Cox - Auto Market Report, Sept 23

In the Cox - Auto Market Report released on September 23, delve into the current state of the automotive market. They highlight the impact of rising delta variant cases on consumer sentiment and vehicle demand. The report notes that while the market has been on a strong recovery path since the COVID-19 downturn, the recent surge in virus cases could hinder further progress. The authors discuss the significant supply chain challenges faced by the industry, including the global semiconductor shortage. This shortage has resulted in production delays and limited inventory for many automakers. As a result, vehicle prices have skyrocketed, leading to concerns about affordability and potential impacts on sales. In terms of vehicle sales, the report indicates a decline in new vehicle sales in August compared to the previous month. However, used vehicle sales continue to perform well, driven by demand for affordable options and the limited supply of new vehicles. The authors note that used vehicles are offering attractive alternatives for consumers in light of rising prices for new cars. The report also highlights the tightening credit conditions for auto loans, potentially limiting access to financing for some buyers. This factor, combined with the affordability concerns, could further impact vehicle sales. Additionally, the authors discuss the potential impact of the ongoing labor shortage on the automotive industry. With many workers leaving the industry during the pandemic, there is a shortage of skilled laborers, leading to production constraints and delays. In conclusion, the Cox - Auto Market Report emphasizes the challenges faced by the automotive market, including the delta variant, supply chain disruptions, rising vehicle prices, tightening credit conditions, and the labor shortage. The report provides valuable insights into the current state of the industry and sheds light on the factors that may influence its future trajectory.