Detroit’s Big 3 automakers may not be the major giants they once were. A new report from Bloomberg cites IHS Markit, which claims GM, Ford and FCA will build fewer vehicles in North America than foreign automakers for the first time ever this year.
It’s expected the Big 3 will build 8.6 million cars in North America this year, while all other foreign automakers, plus Tesla, will build 8.7 million vehicles on the continent. The news arrives as Ford and GM, specifically, begin to build more cars in China. GM builds many of its vehicles locally in China with its SAIC-Wuling joint venture, and the Buick Envision is imported from China to North America. Ford announced the next-generation Focus compact car will be imported from China as well.
The report says the gap will continue to grow, too. By 2024, Detroit automakers will reportedly build 8.1 million cars in North America, while other automakers will build 9.8 million vehicles in the region. Keep in mind, North America represents Canada, the United States and Mexico.
However, many foreign automakers have announced major investments in the United States. Volvo, Volkswagen, Toyota and Honda all have plans for major U.S. manufacturing expansions. With this in mind, projections show American manufacturing jobs will rise in the coming years. But, GM, Ford and FCA may not be the employers.