Consumer Demand and Lacking Inventory Could Last Another Year
A chronic shortage of microchips and other supply-chain disruptions that have forced automakers to idle assembly plants, in some cases for months, have upended the industry’s steady recovery from the COVID-19 pandemic. The auto industry’s tight new-vehicle supplies and strong retail demand could extend almost another year because of ongoing inventory shortages and strong economic conditions, Toyota Motor North America executives recently said.
J.D. Power, LMC and Cox Automotive said this week that U.S. industry sales will rise 7 to 8% in July over July 2020, but they estimate the annualized sales pace will continue to fall, to 15 million in July, after hitting 18.69 million in April and averaging 17 million a month in the first half.