Business · Companies · 18 hrs ago
Automakers target US pickup and SUV demand as other markets weaken
With sales falling sharply in China and the European market weak, global automakers are turning to the United States for growth.
They are focusing on pickups and SUVs because demand for these higher-profit vehicles in the US remains steady.
Volkswagen is considering building a pickup for the US market, its first such move in 40 years.
Hyundai, Toyota, Honda and Nissan are also increasing local production and investment in new vehicles.
Hyundai CEO José Muñoz said the United States was behind all three of his top priorities.
More factory capacity could create oversupply and weaken profits if companies produce more vehicles than buyers want.
Automakers are pressing ahead with their US plans, while the risk of excess supply remains.
Global automakers are stepping up efforts to sell pickups and SUVs in the United States as demand in China and Europe weakens.
They are targeting the US market because demand for these higher-profit vehicles remains steady.
Volkswagen is considering making a pickup for the US market for the first time in 40 years.
Hyundai, Toyota, Honda and Nissan are also increasing local production and investment in new vehicles.
The expansion has raised concerns that excess supply could hurt profitability.
- Who
- Global automakers, including Volkswagen, Hyundai, Toyota, Honda and Nissan.
- What
- They are increasing efforts to sell pickups and SUVs in the United States.
- When
- The report cited a Wall Street Journal account dated November 7, local time.
- Where
- The United States.
- Why
- China and Europe are weak markets, while US demand for higher-profit pickups and SUVs remains steady.
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- Volkswagen
- Considering a US-market pickup for the first time in 40 years
- Markets
- China and Europe are weakening
- US demand
- Demand for higher-profit pickups and SUVs remains steady
- Other automakers
- Hyundai, Toyota, Honda and Nissan are increasing local production and new-vehicle investment