• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: Ford’s High-End Failure
  • Ram Returning to Midsize Pickup Segment; Shows Dealers a Concept EV
  • Why Isn’t That EV Charger Working?
  • Ford Will Trust The Truck — The New One Built at BlueOval City
  • Cupra Could Be Headed to the U.S.
  • March New Vehicle Sales to Rise 6.2% Over Last Year
  • Hyundai, Kia Recall Warns Owners of 570K Vehicles to Park Outside
  • Ford Facing $3 Billion in Losses on EV Business for 2023
  • Higher Interest Rates, Bank Failures Pose Challenge to Car Business
  • General Motors to Face Class Action Lawsuit
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Infiniti QX80
    • A Week With: 2023 Genesis GV80 Prestige 3.5 Turbo
    • First Drive: 2024 Dodge Hornet R/T
    • First Drive: 2023 Dodge Hornet GT
    • First Drive: 2023 Genesis Electrified GV70
    • First Drive: 2023 Nissan Ariya e-4orce AWD
    • A Week With: 2023 Jeep Compass Limited
    • A Week With: 2023 Cadillac Escalade V-Series
    • A Week With: 2023 Volvo XC40 AWD Ultimate
    • First Drive: 2024 Subaru Crosstrek
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Outlook for Auto Industry Looks Promising in 2021

        Outlook for Auto Industry Looks Promising in 2021

        Sales expected to hit 16.3 million units in 2021.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        Nov. 23, 2020
        Sales of new trucks are likely to continue leading the auto industry’s recovery from the pandemic in 2021.

        Despite the continuing pain from the pandemic, signs point to a solid rebound in sales and production of new vehicles in 2021 and 2022, according to economists from the University of Michigan.

        Economists presenting at U-M’s 68th annual economic outlook conference, which is closely watched by automakers, noted this week the recovery in the sales from the slump created by the pandemic earlier this year through the late summer and fall have created the momentum to continue the upturn in 2021 and beyond.

        Daniil Manaenkov, a U.S. forecasting specialist who was part of the panel that presented the forecast during the annual conference, said outlook is for new vehicle sales to climb to 16.3 million unit in 2021, up from the final estimate of 14.5 million in 2020 after a strong finish.

        (Britain to ban sale of all new gas and diesel cars by 2030.)

        The outlook calls for sales to continue to climb to 16.7 million units in 2022.

        New vehicle buyers will continue buying online as part of the ongoing rebound in 2021.

        While GDP is expected to drop 3.6% in 2020 despite the partial rebound in the last half of the year, the real GDP returns to pre-pandemic levels only in the second half of 2021 grows by 4.2% gain in 2021 as the economy rebounds from the recession that followed COVID-19 pandemic, according to the U-M’s predictions.

        However, COVID-19 remains a significant risk in calculating the outlook for 2021, according to the U-M economists, as the U.S. waits for the distribution of a vaccine that can minimize the threat from virus.

        In the auto industry, for example, the pandemic still threatens the supply chain that feeds assembly plants in the United States. Problems with the COVID-19 outbreaks in Mexico, where the death toll from the pandemic passed 100,000 last week, have already led companies like General Motors to cancel shifts and curtail overtime, noted Kristin Dzieczek, vice president of Center for Automotive Research.,

        Car buyers, however, tend to be over 50 and financially secure with incomes of more than $75,000, she added, which has helped in stabilizing the outlook for the industry.

        Low interest rates also are expected to continue for the foreseeable future, noted Louise Sheiner, an economist with The Brookings Institution. The heavy borrowing by the federal government is not expected to crowd out the

        New car sales are expected to rise for the next two years, hitting pre-pandemic levels.

        borrowing needed to sustain private investment. “Clearly we have much more space for borrowing than we thought,” she said, which will help keep interest rates low.

        (Trade-in values on used car prices falling back to normal.)

        Another factor that should help give the car industry a boost is the boom in housing starts.

        David Berson, chief economist for Nationwide Insurance, noted that housing starts in 2020 are at the highest level since 2006 during the housing boom that preceded the Great Recession. Historically, there has been a strong correlation between housing starts and sales of light-duty pickup trucks, which have boomed this year despite declines oil-gas industry, farming and ranching.

        The boom in housing starts is likely to continue, said Berson. While underwriters have tightened up their requirements, making mortgages tougher to get, the demand is extraordinarily strong, he said. Surveys among home builders indicate that there is a steady stream of buyers looking at new homes.

        “There is a desire for space,” he said. “Builder confidence is really high.”

        Housing starts are rising, which generally translates to strong new vehicle sales.

        On the other hand, the pandemic has had a major impact on the travel industry, which is down 72% this year leading to major unemployment across the sector, according Robert Arnold of the Congressional Budget Office.

        A number of the panelists who spoke during the two-day conference cautioned that political infighting and rancor continues to rise in the United States, and is closing in on the point where it poses a threat to the economy for the long term and could easily lower the U.S. growth rate, leaving the U.S. poorer for a decade.

        (Electrified vehicles top registration of diesels in Europe for first time.)

        Manaenkov said in the short term the economy will require government assistance and the U-M forecast that divided government in Washington D.C. will manage to produce a stimulus package since the need aid is self-evident. Longer term, however, the outlook for compromise is less certain, he added.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: Ford’s High-End Failure

        Yesterday
        Ram 1500 Revolution Battery-electric Vehicle (BEV) Concept grill

        Ram Returning to Midsize Pickup Segment; Shows Dealers a Concept EV

        March 24, 2023
        Blink Charging station user

        Why Isn’t That EV Charger Working?

        March 24, 2023

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: