Businesses and whole industries are bracing for a possible recession. With the automotive industry's presence in the roots and every branch of the national economy, some wonder what the impact of continued economic challenges will be. Cox Automotive's Jonathan Smoke released new data based on national information.
🗓 Month to month. The average price of a new vehicle has hit $700 a month. New inventory limitations and the higher-end models produced with the available semiconductor chips contribute to the rising costs.
🚙 Used and New. The upward trend is still affecting new and used cars. Used car prices are up 16.1%, while new are up 12.6%
🚀 Low Earth Orbit. Vehicle prices are still climbing and are currently at $47k on average.
🧥 Dealers are insulated. Data shows dealers should not feel any severe consequences of a potential recession for 12-18 months. Jonathan Smoke shared evidence that the market for new vehicles is more insulated than in past economic recession situations.
😟The worry. Customers will pull back if they see a recession coming. As people have shared in other contexts, customers will remember who took care and who took advantage when this is all said and done.
⛽Gas coming down? The average price of unleaded gas dropped nearly 2% week over week and is down 2.4% from the June 13 high point of $5.02.
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.