There's growing concern on Wall Street that this year's supply shortages could quickly turn into a 'demand destruction' scenario just as auto production is finally ramping back up.
The pandemic disrupted manufacturing and supply chains around the world, forcing automakers to cut production way back. The resulting shortage of new cars, trucks and SUVs meant that automakers and dealers demanded – and got – much higher prices for the vehicles they were able to deliver.
Cox Automotive is forecasting U.S. new vehicle sales of 14.1 million in 2023, which Charlie Chesbrough, Cox's senior economist and senior director of industry insights, described as"tepidly optimistic." S&P Global Mobility expects new vehicle sales globally to reach nearly 83.6 million units in 2023, a 5.6% increase from the previous year. In the U.S., the data and consulting firm expects sales will be up by 7%, to about 14.8 million units in 2023.
"Ongoing supply chain challenges and recessionary fears will result in a cautious build-back for the market. US consumers are hunkering down, and recovery towards pre-pandemic vehicle demand levels feels like a hard sell. Inventory and incentive activity will be key barometers to gauge potential demand destruction," said Chris Hopson, manager of North American light vehicle sales forecast at S&P Global Mobility, in a statement.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Get a glimpse of the One Plus 11 with these official imagesOnePlus' flagship for 2023 will launch on February 7th, 2023.
Read more »
2023 Ford GT Mk IV Send-Off Is the Final and Rowdiest Version of AllOnly 67 hand-built cars will be made, in honor of the Le Mans–winning 1967 GT Mk IV race car piloted by Americans Dan Gurney and A.J. Foyt.
Read more »
Ice Hockey Top 20, Dec. 26: New faces enter the fray once againA look at the final ice hockey Top 20 before the calendar flips to 2023.
Read more »
Silver Price Analysis: XAG/USD to advance toward $25 by end-2023 – CommerzbankSilver (XAG/USD) price looks back on a mixed year. Economists at Commerzbank expect the precious metal to enjoy a favourable market situation next yea
Read more »
23 astronomical events to look out for in 2023Among them are 11 meteor showers, two eclipses, a blue moon, and a supermoon that will present not once but four times throughout the year.
Read more »