Cox Automotive's predictions for the U.S. auto industry point to a challenging year ahead.
Wall Street and industry analysts remain on high alert for signs of a "demand destruction" scenario for the U.S. automotive industry this year.They range from electric vehicle sales outpacing the overall industry to concerns about consumer demand amid economic pressures.David Paul Morris | Bloomberg | Getty Imagesa "demand destruction"
Those factors created a supply problem for the auto industry, which Cox Automotive and others believe may switch to a"We're swapping a supply problem for a demand problem," Cox Automotive chief economist Jonathan Smoke said Thursday.this year that point to such an outcome. Here they are along with reasons why investors should be mindful of them.
"We see this as one of the silver linings for dealers," Smoke said. "The service department usually does well [and] is somewhat counter-cyclical during economic downturns."High interest rates are making vehicle purchasingfor mainstream buyers and less economical for more wealthy consumers. Such conditions are expected to push those who have the cash to purchase a vehicle to buy it without financing it.
"The longer-term concern is that this causes what is produced to skew even more towards luxury and away from affordable price points, which means even the U.S. vehicle market has a long-term affordability issue," Smoke said.Used vehicle prices skyrocketed during the first two years of the coronavirus pandemic due to the low availability of new cars and trucks. The wholesale pricing peaked in January 2022.
Automakers are expected to rely more heavily on sales to commercial and fleet customers such as rental car and government agencies than they have in recent years to increase total sales.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
New 'Spider-Man: No Way Home' Funko Pop Celebrates Charlie Cox's Daredevil CameoNew 'Spider-Man: No Way Home' Funko pop celebrates Charlie Cox's cameo.
Consulte Mais informação »
Spencer Cox’s new liaison to the business community is a big fan of the governor — and also a big donorUtah Gov. Spencer Cox appointed Brad Bonham as the state's entrepreneur-in-chief within his Office of Economic Opportunity. Bonham gave Cox's campaign $50,000 in November and has been a supportive of the governor's elections efforts in the past.
Consulte Mais informação »
Auto123 | New Car, Used Cars, Auto Show, Car Reviews & Car News | Auto123L'équipe Auto123 se mobilise la semaine prochaine pour nous dévoiler son expérience de conduite avec Kia Soul GT-Line 2023. 🚙 Stay tuned 👌 📲 Kia kiasoulgtline kiacanada
Consulte Mais informação »
Eagles legends Fletcher Cox and Brandon Graham are savoring what could be their final days together | Marcus HayesBoth will be free agents soon, and both will be expensive next season, so they're unlikely to return, at least not in tandem. If this is their last dance, it's been an amazing 11-year run.
Consulte Mais informação »
Officers plead not guilty in Randy Cox case, the man paralyzed in custody of New Haven policeNEW HAVEN, Conn. — The five New Haven, Connecticut, police officers charged in the case of Richard 'Randy' Cox, a Black man who was paralyzed while being transported in custody, pleaded not guilty on Wednesday during an arraignment hearing.
Consulte Mais informação »
What is cedar fever and what can you do about it?Many Central Texans have been muddling through cedar fever lately, but what exactly is cedar fever and what can people do to treat it? Allergist Dr. Ron Cox of Greater Austin Allergy sits down with FOX 7 Austin's John Krinjak to explain more.
Consulte Mais informação »