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May 2025 U.S. new-vehicle sales, scheduled to be reported early next week, are expected to show a slower sales level from March and April’s tariff-inspired buying surge, according to the Cox Automotive forecast released today. The May seasonally adjusted annual rate (SAAR), or sales rate, is forecast by Cox Automotive* at ~16.0 million, up slightly from last May’s 15.8 million level. However, this represents a significant decline from March’s 17.8 million and April’s 17.3 million pace. Sales volume in May is expected to rise 3.2% from last year and 2.5% from last month. This month’s gains, however, are overstated because May has one more selling day than last year or last month.
“The vehicle market has been particularly strong since new tariff announcements in March, as many vehicle shoppers who were considering buying this year decided to pull ahead their purchase, before higher prices hit the market,” said Charlie Chesbrough, senior economist at Cox Automotive. “However, much of that pull-ahead demand has now been satiated, so consumer demand is expected to fall this month.” Continue reading →
Autonomous Vehicles – Skepticism Rules Consumers
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Virtually all automakers now have some type automated driving system categorized as Level 2 or Level 2+ on the SAE Autonomous Driving Levels standard.* These include General Motors’ Super Cruise; Tesla Autopilot; and numerous Mercedes, BMW and Stellantis systems in Europe and Nio in mainland China. More options are becoming obtainable each year.
“The choice between Level 3 automation [conditional] and Level 2/Level 2+ systems [partial automation] often divides the industry, resulting in notable differences in strategies among autonomous vehicle companies,” said Vivek Beriwal of S&P Global Mobility, a distinct part of S&P Global. “A key assumption of Level 3 systems is that the automaker assumes liability for its safe operation in “autonomous mode.” This has caused some automakers to focus on expanding functionality within Level 2+ while delaying any potential Level 3 upgrades,” Beriwal observes. Continue reading →