Friday, January 27, 2023

The automotive industry in America will be punished in 2023: demand will overwhelm them

Some echoes about the economic recession that will enter the United States during 2022created unease in world markets and drove the dollar to historic prices in Colombia.

,See also: The Colombian company will come to the United States: thousands of people like it in our country,

Even the announcement that real wages would not be increased in North America and Europe had a reason Shopping in stores is negatively affected during times like Christmas.

Now, a cautious voice is raised by the companies that are part of the automotive industry, due to the difficulties They are being transported through their respective supply chains.

Automotive industry in US will face problems due to high demand

During 2022, companies in that sector faced several difficulties due to supply chain issues and high interest rates.

The pandemic disrupted manufacturing and supply chains across the globe, a situation that prompted car companies to reduce their production. This prompted the decision of car manufacturers and car dealers Demand higher prices for vehicles than they can deliver.

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Now that sales indexes are showing improvement in the United States, there is concern on Wall Street that the scenario could turn into a supply shortage. “Demand Destruction.” Experts in this field expect sales of cars at the end of 2022 13.7 million vehicles compared to 15.1 million in 2021 and 14.6 in 2020According to the newspaper La Opinion.

The short-term outlook is that higher interest rates, recessions, and excess inventories will create Car makers will have to cut prices To attract potential buyers, which would mean relief for customers, but less profit for production companies.

Thus far, S&P Global Mobility expects global new vehicle sales to reach approx. 83.6 million units in 2023, an increase of 5.6% Regarding last year.

Nation World News Desk
Nation World News Desk
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