The ZeroSum Round Up is a collection of articles, reports, and other information that ZeroSum believes is useful to automotive dealers and others working in the industry.
This October, the automotive industry continues to shift rapidly, especially when it comes to inventory. Here are some of the most important articles that auto dealers should read this month.
Ford increasing the price of its F-150 Lightning Pro by $5000
Ford cited supply chain issues and higher material costs as the reason for increasing the price of the electric truck for the second time since August. The least expensive model will now cost $51,974.
Read the article: https://www.businessinsider.com/ford-raises-price-f-150-electric-truck-second-time-2022-10
The Federal Reserve increasing interest loan rates
In an effort to control inflation, the Federal Reserve has aggressively increased interest rates just as more new cars are finally available. Cox Automotive found that the new vehicle loan rate is now 7%, up 2% this year.
Read the article: https://www.cnbc.com/2022/10/07/new-cars-are-finally-back-in-stock-but-they-come-at-a-steep-price.html
Rising energy prices in Europe
With already high energy prices and an upcoming harsh winter in Europe, Europe-based OEM final assembly plants could lose 1 million units per quarter between now and the end of next year according to S&P Global Mobility.
Learn more: https://ihsmarkit.com/research-analysis/auto-industry-faces-significant-risk-from-european-energy-crun.html
Stellantis expecting the semi-conductor crisis to ease
Chief Executive Carlos Tavares is expecting the chip shortage to be fixed by 2023 and inflation to be under control in the next two years.
Read the article: https://www.reuters.com/business/autos-transportation/stellantis-expects-semiconductor-supply-be-fixed-by-end-2023-2022-10-18/
Hurricane Ian impacting used car market
With many Floridians needing to replace damaged cars after hurricane Ian and as much as 80% of replacement shopping taking place in the used car market, used car wholesale prices could increase this fall and winter.
Read the article: https://www.marketwatch.com/story/what-hurricane-ian-has-done-to-the-used-car-market-11665762669
For the most up to date automotive inventory and pricing trends, read the ZeroSum Market First Report.