The Rising Influence of Rising Affluence

[DewDiligence]

1Q22 US auto sales drop sharply YoY_due_to_continued_supply_constraints:

https://www.wsj.com/articles/car-sales-seen-sputtering-as-supply-chain-woes-hurt-production-11648805401

Major auto makers reported a pullback in U.S. sales for the first quarter of 2022, as a shortage of vehicles on dealership lots continued to hamper business and suppress buying activity ahead of what is typically a busy selling season.
Analysts are forecasting first-quarter sales for the industry could drop as much as 16% over the prior-year period, when car-lot stock was more plentiful and buyers, benefiting from a recovering economy, snatched up vehicles at a blistering pace.

…Toyota’s U.S. sales slid nearly 15% in the just-ended quarter, while GM was down roughly 20%.

…Auto executives and dealers say underlying demand remains strong with most new cars and trucks sold almost as soon as they hit the lot. But supply-chain disruptions continue to weigh on factory production, limiting how fast car companies can restock dealerships and fulfill vehicle orders.

…The industry’s annualized selling pace…is expected to slow to 12.7 million in the first quarter [seasonally adjusted], according to J.D. Power. In comparison, automakers last year sold just shy of 15 million vehicles in the U.S., the firm said, up slightly from 2020. For five straight years before the pandemic, the industry had eclipsed the mark of 17 million vehicles.

…“Nobody is worried about where their next sale is coming from, they’re worried about where their next car is coming from,” said Paul Walser, former chairman of the National Automotive Dealers Association.

Great soundbite, LOL.