Sep 26 2014

The Japanese car companies also set a record for the percentage of vehicles sold in the U.S. that were built in North America.  That figure rose to 71% from 70% a year ago.“I would expect that to grow with the U.S. market,” Bookbinder said. “It’s been a trend that automakers want to produce cars in the markets where they are sold.”Automakers are on track to sell about 16.4 million vehicles in the U.S. this year, according to IHS Automotive, the best since 2006, when the industry sold 16.5 million vehicles. Japanese companies such as Honda and Toyota are reacting to that increase by expanding production in the U.S. and North America. The U.S. production helps the automakers cut back on import duties, shipping expenses and foreign exchange risk.

 

Investment by Japanese auto companies in U.S. car manufacturing has hit record levels as auto sales continue their rebound from the Great Recession. Auto production by the Japanese brands in the U.S. topped a record 3.6 million last year, said Ron Bookbinder, general director the Japan Automobile Manufacturers Assn.’s U.S. office. That's up 10% from 2012. As production rose, the manufacturers purchased a record number of U.S.-produced auto parts. The companies spent $57 billion with suppliers last year, an 11% increase. About 94% of the parts that go into Honda cars made in North America are produced in North America, Bookbinder said.