Opinions about the US economy are like jumper cables; most folks have them, are happy to share them, and if misused, they could ruin your friendship. ⚡️💀 We noticed a few such takes floating around the news today and were interested in how they seem to say the same thing with different takeaways.
🚗 🤑 Demand in Europe and North America for vehicles has dropped in recent days. While demand remains high for top-end models, delivery times for most new orders are dropping as even currently reduced plant production catches up to falling demand. Analysts say it is becoming more common (and evident) that consumer interest is deflated by higher auto prices.
🤷♀️ 🗺 Automakers execs maintain confidence that the industry is prepared for any potential recession. OEMs are displaying optimism with a chain of good quarters behind some of them and a great deal of pent-up demand ahead. Many are restructuring, solidifying supply chains, adjusting staffing, and exploring new retail methods to ensure they can thrive in the market's next shape.
🔬 😓 Cox Automotive's Senior Economist Charlie Chesbrough says there is little evidence of inventory normalizing, painting a sales volume recovery as a distant hope on the horizon.
If new car demand continues to drop due to higher prices which stem from lower sales volume, and inventory numbers are not meant to normalize for some time still, the future may not be something that can be predicted, only taken a day at a time.