March 1, 2024


Where Innovation Lives

Auto industry research group lowers new car sales forecast by nearly a million vehicles

1 min read


An vehicle sector study group has decreased its 2022 new vehicle income forecast for the 2nd time this yr, and it is not simply because of inflation, higher gas costs or the rate of new cars.

Cox Automotive dropped its 2022 new auto revenue forecast by nearly a million automobiles this time – from 15.3 million to 14.4 million. Cox Senior economist Charlie Chesbrough says automakers are hobbled by persistent sections shortages, specially computer system chips.

Chesbrough says in the close to term, there’s not much motor vehicle firms can do. In the lengthy term, “A whole lot of producers are rethinking the place they are finding their components, and I believe that is component of the impetus to see a even larger hard work to get extra domestic output of many parts such as silicone chips.”

Chesbrough says the war in Ukraine is also influencing the components scarcity, simply because the region is a big producer of wiring harnesses.

Chesborough suggests pentup demand remains extremely strong – but he notes that demand from customers no for a longer time includes quite a few reduced profits drivers. He states they stopped becoming in a position to pay for new cars and trucks even prior to the pandemic.

“People who are buying right now are people today who can manage these cars, and can manage to wait to get accurately what they want.”

Chesbrough claims it can be unclear when the chips shortage will relieve.


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