On a bi-weekly basis, CAR welcomes our audience to decompress with our President and CEO, Carla Bailo, as she covers and shares her thoughts on the latest Hot Topics happening in the automotive industry. While the biweekly newsletter primarily covers three topics, this feature story previews one of the topics covered on July 11, 2022. If you would like access to the full newsletter for better insights into critical industry issues you and your organization are facing, sign up for our mailing list here.
HOT TOPICS 7/4/2022 – 7/11/2022
Q2 Auto Sales
- New-car sales plunge: Supply constraints and rising prices limit buyers
- GM Q2 volume slips, but surpasses Toyota
- Ford U.S. Auto Sales Defy Industry’s Q2 Slump But This Fear Hits GM, Ford Stock
- Hybrids Lead Q2 Sales for Toyota
- Tesla (TSLA) announces just over 250,000 deliveries – its first down quarter in a long time
- FCA Reports Second-quarter 2022 US Sales
I’ve been saying this for some time regarding automobile sales: there will be a point when inflation and affordability start to impact. We see the number of days supply improving, but sales are still down. People have been hit hard in the pocketbook between food, gas, and other household expenses, and there doesn’t seem to be an end in the near future. I’m consistently amazed when I go to the grocery store and see prices appearing to increase (or package sizes getting small for the same price) nearly every week. Many Americans live paycheck to paycheck without a lot of disposable income.
Frankly, even those with disposable income are seeing their stocks and investment portfolios shrink, making them reconsider their buying habits. We also know that people are driving fewer miles with high fuel prices, which means cars will last longer with less service. How long these prices will continue is anybody’s guess, but we have seen barrel prices less than $100 for the first time in a long time.
Altogether, I remain very cautiously pessimistic when it comes to automobile sales this year. CAR is continuously updating our outlook, as are many others. The numbers continue to fall, and sales this year are expected to be less than last year. Beyond this, the semiconductor shortage may well go into the end of 2023. Hang on – this ride is far from over!
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