By 2004, 1 million units of North American light-truck capacity will be added, bringing the total to 10.4 million.

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But look out: Demand for SUVs, while still very strong, is flattening (see chart, below), while overall light-truck plant capacity is still growing fast.

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At this point, however, the truck space will soon hit industrial capacity constraints and we may be looking at substantially reduced incentives or as economists call them, higher prices.

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Eliminating shifts at two other truck plants in Michigan and Missouri will help reduce production capacity by 400, 000 units, the company said.

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According to Ford and Toyota, the jointly-developed new hybrid powertrain will offer better fuel efficiency while offering the same capabilities like towing capacity expected of a regular gas-powered truck.

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Light trucks have been another story: The domestics have flourished, keeping their pickup truck, minivan and SUV plants running at 86% of capacity.

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