Category Archives: economy

West European Car Sales Flat Before Russian War On Ukraine

Our 2022 PV forecast has become more cautious since last month as supply bottlenecks are  expected to be exacerbated from Russia’s invasion of Ukraine and the resulting sanctions. The selling rate is still anticipated to improve over the course of 2022 but at a slower rate than we forecast last month. Aside from the supply disruption, downward pressure is building on underlying demand through inflation and confidence,” LMC warned. Continue reading

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State of Our Union and the Auto Industry

The auto industry’s economic impact reaches all 50 states, sustaining 10 million American jobs and more than $650 billion in paychecks. The Biden Administration – in the face of Republican opposition and treasonous praise for Putin’s war against Ukraine – has proposed a forward-looking plan that will help the auto industry continue to provide economic growth via a cleaner, safer and smarter automotive future. We need to control our destiny here. This is clear. We need to rid ourselves of alleged leaders who mock our alliances, favor rich despots and are long on talk, but weak on foreign policy and even weaker on our defense. Continue reading

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Ford “Suspends” Russian Van Manufacturing and Sales

Today Ford Motor said its Russian operations of commercial van manufacturing and Russian sales through a minority interest in the Sollers-Ford joint venture are suspended effective immediately. Continue reading

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Ukraine – Dialogue And Diplomacy Are Only Way Forward

“The current tensions primarily affect ordinary people, disrupting their lives on a daily basis and increasing uncertainty for their future. It is also destabilizing the entire region, adding to the economic and social hardship. IndustriALL Global Union and IndustriALL European Trade Union urge the relevant policy makers from Ukraine, the Russian Federation, the USA, the EU and international organizations to redouble their efforts to focus the process towards one of dialogue and political solutions to ensure a stable peaceful outcome for Ukraine, and to guarantee security for Europe and Ukraine’s neighboring countries. Continue reading

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Michigan Gives $7.5m to Ford for Corktown Innovation District

Anchored at the Michigan Central Train Station, which Ford originally announced support for in 2018, the district will be a state-of-the-art facility that will serve as a “globally-recognized hub for talent, mobility innovation, entrepreneurship, sustainability, affordable housing, small business opportunities and community engagement.” Since 2018, Ford has been in the process of investing $740 million in the 1.2-million-square-foot campus, which is expected to hold 5,000 Ford and non-Ford workers. Continue reading

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Global Light Vehicle Sales Improved in January 2022

Nonetheless, LMC noted that supply chain issues remain the “key headwind for demand, though last month also saw the rapid spread of Omicron deal a blow to some potential market activity. Reports of an improving supply environment in some markets, including China, means the worst of the crisis is likely over, it remains the key headwind to sales during 2022, overshadowing concerns over inflation and a more subdued economic outlook.” Continue reading

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BMW Manufacturing is Largest US Auto Exporter Again

Forget Trump’s wrong assertion that trade is a zero-sum game and failed trade war, BMW Manufacturing led the US in automotive exports by value for the eighth consecutive year, according to the U.S. Department of Commerce. During 2021, BMW Plant Spartanburg exported 257,876 BMWs with a total export value of more than $10.1 billion. Continue reading

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US Scheduled Airline Passengers Up Under Biden

During 2019, the last full calendar year before the onset of COVID-19 and the botched Trump Administration non- or anti-response, domestic flights accounted for 88% of all passengers, and international flights accounted for 12%. During 2021, domestic flights accounted for 91% of all passengers, and international flights accounted for 9%. Continue reading

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Building Forward Better – President Biden, DOT, DOE Announce $5B National EV Charging Network

 “A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution,” said U.S. Transportation Secretary Pete Buttigieg. “The President’s Bipartisan Infrastructure Law will help us win the EV race by working with states, labor, and the private sector to deploy a historic nationwide charging network that will make EV charging accessible for more Americans.” Continue reading

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Biden Administration Cuts Republican Budget Deficit by 66%

Biden Administration Cuts Republican Budget Deficit by 66% Continue reading

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Ford Motor Posts Tepid Q4, FY 2021 Financial Results

However, vehicles sold and market share, cash flow (-$8.5B) for continuing operations declined during 2021. Ford lost money in Europe and, ahem, China, which is recovering faster than other economies from the Covid crisis. In North America, Bronco, Maverick, Mustang Mach-E contributed to a two-point U.S. share gain, to 15%. During Q4 Ford reinstated a regular dividend of 10 cents per share. Continue reading

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NADA – Light Trucks Dominating Market

According to J.D. Power, the average transaction price for a new light vehicle in January 2022 is expected to reach $44,905. High transaction prices continue to be supported by strong demand and very low OEM discounting. Average incentive spending per unit in January 2022 should total just $1,319, down by $2,163 from January 2021, J.D. Power says. Continued high demand for used vehicles has increased consumers’ equity in their trades. J.D. Power expects the average consumer trade-in equity to be up by 88% year over year for January 2022. Continue reading

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January 2022 US Sales Off 9%. Chips, Supply Chain Issues Bite

Even with an average $45,000 transaction price squeezing people, retail demand remained the driving force of the market because the wealthy fared very well during the Covid crisis. The Biden Administration’s economic recovery, in AutoInformed’s view, also played a huge roll with its surging job creation and forward thinking Build Back Better strategy universally opposed by the Republicans who are largely responsible for the covid disaster that destroyed the US economy. Continue reading

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GM Posts Record $10.4B Earnings in 2021

Part of the record results came from execution by an all-star management team of a timely strategy, part from strong demand for what in AutoInformed’s view are the strongest product lines in GM’s history. However, vehicles it sold globally dropped to 6.3 million, -8% from 2020 and a drop of -18% from Covid-free 2019. Continue reading

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January US New Vehicle Sales to Decline. Profits, Prices Up

The automotive economy is continuing to grow stronger under the Biden Administration recovery. Consumers will spend ~$37.2 billion on new vehicles this month, the highest on record for the month of January and 10% above January 2020. Continue reading

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