At this year’s New York Auto Forum, media partner CBT News anchor Jim Fitzpatrick is joined by Patrick Manzi, chief economist at NADA, to discuss the favorable economic conditions contributing to a strong automotive market, including robust job availability and wage growth, while also addressing challenges like rising interest rates and the transition to EVs.
Key Takeaways
1. Patrick Manzi highlights a robust labor market and solid wage gains, suggesting a favorable environment for new car purchases in 2024. He anticipates continued growth in retail and fleet sales, possibly exceeding the forecast of 15.9 million sales.
2. Manzi highlights the concerns about credit card and auto loan delinquencies, particularly among lower-income borrowers, which could affect the used vehicle market. Additionally, rising interest rates have increased monthly payments for car buyers, which impacts affordability. However, automakers are countering this with incentives and subvened rates to attract customers.
3. The shift towards green energy and EVs acknowledges the current reliance on fossil fuels to support this transition. Despite the tough sell of EVs to consumers, there is optimism about the eventual integration of green energy in the automotive industry, backed by America’s strong oil production and refining capabilities.
"Coming out of 2023, we have a very strong labor market. People, pretty much anybody who wants a job has one or is able to go get one. We've seen really solid wage gains, growth in real disposable income” – Patrick Manzi
