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Q2 Output Plan Pared

Q2 Output Plan Pared

A month after the industry pumped up second-quarter output plans, some manufacturers have pared their April-June schedules to the tune of 59,300 units. 

In their latest round of review meetings, automotive production planners have settled on April-June output totaling 4,709,200 cars and trucks, 1.2% ahead of like-2015’s 4,651,400 completions.

Still, that is 59,300 less than had been on tap a month ago, due in part to some production losses in late-April and early May resulting from parts shortages.

Bulging inventories are what prompted Fiat Chrysler to whack 40,000 units from its April-June output slate, including 24,200 cars and 15,800 trucks. Much of the cut already has been absorbed by an estimated 20,700-unit April underbuild. But May and June are set to see 19,300 fewer vehicles roll off the final assembly lines as well.

Ford’s first official crack at revising its second-quarter slate has the Dearborn automaker scheduling output 26,000 units below an earlier WardsAuto forecast, including 14,100 fewer cars and 11,900 fewer trucks.

Ford’s estimated April tally fell 30,800 vehicles short of plan and May is down an additional 8,400 units. But part of the loss is set to be recovered in June, now 13,200-units higher than earlier forecast.

General Motors, in comparison, has trimmed just 18,000 units in the second-quarter, including an estimated April underbuild of 9,800 vehicles and a cut of 9,600 in May. Those reductions are partly offset by an additional 1,400 assemblies added to the June schedule.

Honda, on the other hand, is increasing second-quarter truck output by 10,900 units, with modest gains in all three months. However, car production is being cut by 5,500 units, again spread across the quarter.

Nissan also is on the plus side, with the addition of 24,300 trucks to its April-June plan offset to a minor degree by a 400-unit shortfall in cars.

In addition, BMW has increased Q2 output by 17,100 vehicles.

Hyundai’s Q2 slate is up by 11,700 vehicles including some 12,100 CUV not previously included in the automaker’s plan.

However, Hyundai’s trucks may have been buried in sister brand-Kia’s prior Q2 slate, as light-truck output there is off 15,500 units, a much steeper decline than normally would be expected. Combined Hyundai-Kia output is 7,700 vehicles less than it was a month earlier, cars accounting for 39.3% of the decline.

Industry production for the year through June is set to reach 9,267,000 vehicles, 2.5% ahead of like-2015.

Collectively, the Detroit Three have slated assembly of 4,699,700 cars and trucks in the second quarter, 1.1% more than in like-2015. That equals a 50.7% output share compared with 51.4% a year ago.

Transplants have 4,391,100 units booked for completion, 5.3% up on the prior year, giving them 47.4% of industry output as against 46.1%

Dedicated medium- and heavy-duty truck makers, running at only 79.9% of prior-year output, account for just 1.9% of the industry’s s Q2 total vs. 2.4% a year earlier.

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