Rumors: Industry Report—Detroit Scrambling To Keep Up

By Doran Dal Pra

February 27, 2012

It wasn't so long ago that the American car industry was on the edge of the abyss—tanking sales, government bailouts, and quality issues had The Big Three in a tailspin. One look right now at Detroit's busy factories, however, reveals that Ford, Chrysler and Chevrolet have stepped back from the brink and are making a come back in a big way.

The Detroit News recently reported that American car makers are on track to breach 14 million sales this year and consumer demand is so strong they are struggling to keep up. To fulfill the calling for American iron, 38,000 automotive jobs were added last year, another 13,000 should be added this year, and it's possible another 20,000 jobs will be created in the next few years if sales reach 15 million by 2015. The Detroit News also reported that should sales reach the 14 million unit mark, American auto factories will have to ramp up to 90 percent of their capacity to support the growth.

Another interesting element in the mix is with all the cuts made to funding and factories during the bailouts, the Detroit automakers could actually be left with too few resources and could run out of stock of some vehicles if sales continue to climb. It's an interesting reversal of fortunes from just a few years ago to be sure.
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The Detroit News