As we round out the third quarter of 2023, the big story is the ongoing labor negotiations, as the outcome could impact inventory worldwide. On today’s episode of Inside Automotive, we’re joined by Joe McCabe, the President and CEO of AutoForecast Solutions, to tell us what he’s predicting for the market.
During the era of COVID, the lack of inventory was a huge blessing for dealers as they realized customers were willing to wait for their desired product. However, over the last 24 to 18 months, manufacturers have discovered if consumers are willing to pay sticker prices or higher, they could sell more and be more profitable per vehicle.
1. According to AutoForscast, a single-day UAW shutdown would result in a loss in production of 25,000 units. Implying that if the strike prolongs for weeks or months, the damage will become unrecoverable.
2. 2019 was the last time the industry took a significant hit, notably just before the COVID-19 breakout, when General Motors went on a 42-day strike
3. The strike for dealers suggests that they must be creative in their future operations and rely on their existing inventories.
4. The most pressing issue for dealers currently is brand loyalty.
5. Electric vehicles are a government- and environmentally-driven incentive rather than a consumer-driven phenomenon. The evidence comes from daily conversations of consumers concerning their grid anxieties.
“EVs should not be the only answer, but rather a part of the answer.”