China surpasses U.S. in auto production
In 2009, China will pass Japan as the biggest automotive producing country
By Jim Carbone -- Purchasing, 3/27/2009 2:24:00 PM
China will surpass Japan as the world’s largest auto-making nation in 2009 after displacing the United States as the second largest car producer in 2008.
China manufactured 9.3 million cars in 2008 while the United States built 8.7 million vehicles, according to researcher iSuppli in El Segundo, Calif. In 2009, China will build 8.7 million autos, compared to 7.6 million for Japan.
China during the last five years more than doubled its domestic automobile production, says Egil Juliussen, director and fellow, automotive research, for iSuppli while U.S. manufacturing has declined by nearly 50%. China produces most of its cars for domestic sale.
Meanwhile, U.S. auto production has been declining steadily due to increasing imports from Canada and Mexico, as well as from Europe and Asia.
In 2003, the U.S. produced nearly three times more cars than China. In 2008, China's production exceeded that of the United States by nearly 7%, according to iSuppli.
While China's car production will decline by 6.5% in 2009, the nation will still outperform the overall global market as well as Japan and the U.S. Global auto production will fall by 25.1% in 2009, following a 6.6% decline in 2008.
Meanwhile, U.S. automakers have outsourced a major portion of their manufacturing of cars destined for the domestic market to Canada and Mexico. Japanese and European auto manufacturers also have auto production facilities in Canada and/or Mexico.
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