As always, Jonathan Smoke's time with David Long and the All Things Used Cars community was insightful and encouraging. He provided a snapshot of Q2 from his vantage point as Cox Automotive's chief economist and traced the most likely trajectory through Q3, Q4, and beyond. Relisten to the full replay on Clubhouse, or check out a central opportunity we pulled out of the talk.
Talking ourselves into a recession. Jonathan shared a recurring piece of data-backed hope regarding dealership climate. A recession is not here, and there is no indication of one beginning anytime soon. However, when people are scared of a recession, their spending changes, and that shift can indeed lead to a recession.
That isn't to say people are not feeling a pinch. Covid-based financial support has ended, and the Russian invasion of Ukraine has increased the cost of living for many Americans. People have reason to be timid and will spend accordingly.
Opportunities are all around.
TL:DR — A high-ranking S. Korean-based auto park maker is pulling a divide and conquer, while SK Group, the 2nd largest individually controlled S. Korean conglomerate, invests in safe chargers for apartment buildings. Each move feels like an investment in being key players in the global shift toward electrification.