|
Vehicle production took a hit after the pandemic disrupted
supply of semiconductor chips and other raw materials, hurting
carmakers' ability to meet the upsurge in demand for personal
mobility. The companies have been playing catch-up ever since as
the supply chain snags gradually ease.
But rising interest rates and fears of a recession may play
spoilsport in an industry where most vehicle purchases are
financed with loans, analysts say. The average transaction price
of vehicles, too, has surged over the last one year.
"Consumers are facing credit uncertainty as rapidly rising
interest rates have created barriers to entry for even the most
qualified buyers," said Jessica Caldwell, executive director of
insights at auto research firm Edmunds.
Detroit giant General Motors Co said earlier this year it would
halt production at its Fort Wayne Assembly truck plant in
Indiana for two weeks to manage inventory.
The automaker is set to post a 15% rise in first-quarter U.S.
sales, while Japanese rival Toyota Motor Corp's sales are likely
to fall nearly 10%, when they publish data beginning Monday,
according to consultant Cox Automotive.
Toyota has continued to struggle with inventory shortages
sparked by supply constraints, losing its crown as the top
selling U.S. automaker to GM.
Edmunds forecasts overall 3,502,324 new cars and trucks to be
sold in the U.S. in the quarter through March, higher than last
year, but a 1.8% decrease from the fourth quarter.
Trucks and crossover SUVs are expected to account for majority
of new retail sales in the quarter, according to automotive data
company J.D. Power.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi
Majumdar)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
