SHOPSMART AUTOS CONSUMER ADVISE – July 17th
SHOPSMART AUTOS CONSUMER ADVISE – July 17th Just two months ago, the auto industry was bracing for disaster. As the coronavirus spread, automakers shut down plants, and car sales plunged. But the industry is starting to breathe a little easier. Factories are churning out trucks and sport utility vehicles, with many of the plants nearly back to production levels that prevailed before the pandemic took hold. While some factory workers have tested positive for the coronavirus, automakers have reported no major outbreaks. Perhaps most important, vehicle sales have perked up more than many industry executives had expected. At the end of March, it did seem like we were heading for a doomsday scenario, But people are starting to buy cars now. June sales will still be well off record levels, but they will be OK. It’s pretty encouraging. A rebound in the auto industry would probably help the economy. It is the nation’s largest manufacturing sector and employs roughly 1.5 million people in manufacturing, sales and service..
That said, auto sales will be down sharply this year, more than in any year since at least 2009; ShopSmart Autos, expects sales of new vehicles to fall about 19 percent this year, to 13.7 million. Experts worry that a surge in coronavirus cases in places like Arizona, Florida and Texas could drop sales further as more people stay home to avoid getting sick or making others ill. In addition, more than 20 million Americans were out of work in May, according to the Labor Department, and unlikely to be in the market for new cars. Rental car companies, which have been hit hard by the drop in travel and typically account for up to 20 percent of the new car market, have all but stopped buying vehicles. Hertz, which operates a fleet of more than 500,000 cars in the United States, filed for bankruptcy protection last month.
Will we see rental orders come back in the fall? We don’t know yet, but is seems like most business travel is going to be on hold at least until the end of the year. Yet automakers and car dealers say they are feeling optimistic because sales of new cars to individuals and families, the industry’s main customer base, have rebounded strongly. Make it a champion day! Brandon Hardison Champion Strategies / ShopSmart Autos
For further Information contact – brandon@shopsmartautos.com or 404-394-8285
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