At the end of last year, nearly 25% of U.S. auto manufacturing capacity was idle, but returning it to use is complicated. Some companies, like Honda and BMW, operate near capacity, while others, like GM and Volvo, have significant unused space. Shifting production from abroad to the U.S. requires substantial investments for updates and infrastructure, as noted by industry experts. Local and global demand shapes capacity usage, but tariffs and manufacturing costs complicate moving foreign models back to domestic plants.
The rhetoric that moving assembly of vehicles into open spaces is easy and quick is not accurate, said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.
While some U.S. automakers are operating at nearly full capacity, others like General Motors have more than a quarter of their U.S. plant capacity unused.
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