The Healthy American Auto Industry

According to a new report from USA Today, American automakers are now operating at “maximum capacity.” Some are canceling annual summer shutdowns and adding new shifts to keep up with demand, which is now projected to reach 14.3 million vehicles by the end of the year.

Automakers are pushing factories and workers to the limit to try to meet burgeoning demand for new vehicles.

Some plants are adding third work shifts. Others are piling on worker overtime and six-day weeks. Ford Motor and Chrysler Group are cutting out or reducing the annual two-week July shutdown at several plants this summer to add thousands of vehicles to their output.

“We have many plants working at maximum capacity now,” says Ford spokeswoman Marcey Evans. “We’re building as many (cars) as we can.” […]

The automakers’ problem now is one they welcome: It’s hot demand. Sales for 2012 are estimated at 14.3 million vehicles, according to IHS Automotive, up from 12.8 million last year.

For perspective, vehicles sales were at a 27 year low when President Obama chose to rescue the industry rather than let it fail. Now they’re struggling to keep up with demand.

Too bad about Obama being a job killer and not having any idea about how to run an economy. After all, the nation could have taken Mitt Romney’s idea and let the auto makers go into managed bankruptcy at a time when there was no capital willing or able to invest in those companies. That would have meant receivership, the selling off of equity, and the virtual demise of any semblance of a domestic auto industry in the United States. Not only would hundreds of thousands of auto workers been left unemployed, but millions more would have lost jobs supplying the auto companies, and all the industries that rely on the spending of auto worker wages. That would have resulted in a much deeper, longer, more painful recession, or even more likely, a full-blown depression.

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