At the same time, all other foreign automakers combined are expected to increase their North American production by around 1.5 million a year or 20 percent, to more than 8 million units.
"A new order is emerging where the Detroit companies may no longer be the volume leaders in their home market," said Grant Thornton LLP Principal Kimberly Rodriguez, co-leader of the firm's global automotive practice.
Grant Thornton LLP reports that Volkswagen and BMW will nearly double their combined production, increasing their output capability to around 1 million units a year while Toyota, Honda, Nissan and Hyundai are projected to expand their combined production by 20 percent, or nearly 1 million units.
The study finds that the dramatic shift in production will have a large impact on North American parts suppliers that will need to secure more business from European and Asian makers.
"Suppliers largely dependent on Detroit OEMs will have to present a new value equation to potential customers from Europe and Asia if they want to participate in the accelerated shift that is coming," said Kimberly Rodriguez.
Source: Grant Thornton LLP
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