First quarter new car production in North America is expected to increase about 5 percent over the next three months, according to a new report published by analysts at IHS Automotive.
The firm says that automakers will build somewhere around 3.6 million new cars during the first quarter of 2011, a 5 percent increase over the 3.39 million built in the same period last year.
The bump takes into account Volkswagen’s new factory in Chattanooga, Tennessee, as well as planned production increases from Mercedes-Benz (30 percent), and Hyundai/ Kia (18 percent), Honda (11 percent) and Toyota (more than 10 percent).
Only Chrysler is expected to post a production decline – about 4 percent – as it realigns its inventories with demand after roller coaster sales over the last few years. In addition, Chrysler has dropped its Dodge Nitro and Caliber models as well as its Ram Dakota pickup since last year.
