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New Domestic Manufacturers Are Heavily Focused on Light Truck Segments

27 January 2000

According to CSM Worldwide, New Domestic Manufacturers Are Heavily Focused on Light Truck Segments

    NORTHVILLE, Mich., Jan. 26 -- According to the latest North
American Light Vehicle Forecast from CSM Worldwide, New Domestic manufacturers
are projected to produce 30% more light vehicles by 2005.  New Domestic
manufacturers, encompassing all non-traditional North American manufacturers*,
are expected to increase output of light truck offerings by 138% over the same
period.
    "We're witnessing manufacturers such as Honda, Toyota, Renault/Nissan and
Volkswagen taking strategic positions in key light truck segments," said
Michael Robinet, Director of Forecast Services for CSM Worldwide.
    "After mastering most of the high volume passenger car segments these
manufacturers have lagged behind the traditional North American manufacturers
in the full-size pickup and SUV segments."
    Evidence of the number of new entries into this market sector includes the
Toyota Tundra/Sequoia and expected entries from Renault/Nissan and Honda.
Through the use of full-frame platforms (also called body-on-frame), these
manufacturers benefit from high production flexibility as well as lower total
development and tooling costs.  The flexibility allows manufacturers to spawn
several bodystyles built on common assembly lines.
    By 2005, output of full-size offerings will double to 26% of New Domestic
light truck build.  "The New Domestics are late to the party but will make up
for lost time with well-focused offerings, raising the bar in the full-size
pickup and SUV segments," said Mr. Robinet.
    CSM Worldwide's latest automotive production forecast also outlines other
trends:
    -  NAFTA Light vehicle production is forecast to reach 16.6 million units
in 2000 calendar year before rising to 17.0 million units by 2005.
    -  Total New Domestic light vehicle output will reach 4.8 million units or
28% (+7% verses today) of NAFTA build by 2005, second only to GM.
    -  Incremental light truck capacity from the New Domestic manufacturers
will be centered in the U.S. instead of Canada or Mexico.  By 2005, over
875,000 incremental units of New Domestic light truck output will emanate from
the U.S., accounting for 80% of the growth.

    CSM Worldwide, Inc. supports the automotive community with global market
intelligence and forecasting services.  CSM analyzes every aspect of the
production environment from manufacturer product and manufacturing plans to
component sourcing and technologies.  The company is headquartered in
Northville, Michigan with offices and affiliations in London, Prague, Sao
Paulo, Beijing, and Tokyo.

    *  Traditional North American Manufacturers include GM, Ford and
DaimlerChrysler.