As reported in the AP, we are starting to see "signs of increased confidence that the US auto market bottomed out last year and will improve in 2010." There have been reports of many automakers considering hiring new employees as they anticipate a recovery in vehicle demand this year. The anticipated high demand also has manufacturers like GM considering reopening some closed factories.
What does this mean for the manufacturing industry? Well of course an increase in vehicle production means an increased demand for parts and services. Many of the automotive suppliers that faced one of their hardest years to date in 2009 are eagerly anticipating what 2010 will bring. The Detroit Free Press reports, "The start of the Detroit auto show was a day for looking ahead with hope," where "automakers talked about the production they're adding back for hot-selling models" and "General Motors and Ford vowed a blitz of competitive vehicles."
With the increased demand ahead in 2010, Chrysler, now owned by Fiat Group SpA, is not only paying close attention to managing the increased volume carefully but also on the quality of the cars they produce. "The best way to change the public's perception of poor quality is to produce better vehicles," said Sergio Marchionne, the head of Chrysler. With the other US automakers likely following in this same fashion to gain back market share in 2010, we will have to expect the demand on first and second tier automotive suppliers will be greater than ever to produce high quality parts with a very minimal margin of error.
In a year as important as this, it is crucial for everything to go right within the domestic automotive industry. The production must be on point, the pricing affordable yet profitable, the decisions sound, and most importantly the quality in place. This will likely be a "make it or break it" year for the US auto companies, and it would be a shame to see them fail over quality issues. With increasing competition from the foreign markets, especially in the past few years, domestic automakers have a lot to overcome in 2010. Outlooks seem hopeful, though, with most analysts anticipating moderate growth in 2010 with a stronger pickup toward the end of the year.
Read the full story from the AP.
Read more about how to control quality issues.
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