Automotive data provider S&P Global Mobility has reported that while U.S. light vehicle sales are expected to remain steady in August, there are signs of a slowdown.
According to Chris Hopson, lead analyst at S&P Global Mobility, “Rising interest rates, credit tightening, and new vehicle pricing levels slowly decelerating remain pressure points for consumers.”
The research predicts 1.34 million new light vehicle sales in August, an 18% increase year-over-year. The research company also reduced its yearly projection for new light vehicle sales in the U.S. from 15.7 million units expected in July to 15.2 million units.
As labor union discussions have recently heated up, the study warned, there may be a disruption in the North American vehicle supply.
According to Joe Langley, associate director at S&P Global Mobility, “The greatest threat to the forecast in the near-term surrounds the union negotiations between the United Auto Workers in the U.S. and Unifor in Canada, with their respective contracts set to expire in mid-September 2023.”
The UAW said on August 25 that members overwhelmingly approved of launching a strike against the Detroit Three automakers in the event that a deal is not struck before the current four-year contract expires on September 14.
