• 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
  • 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
  • Cruise Applies to Test Robotaxis Statewide in California
  • Chevrolet Pulling Plug on Camaro – But an All-Electric Successor Already in the Works
  • Want to Buy an EV? Welcome to the 34 Percent!
  • The End of an Era for Rolls-Royce
  • South Carolina Provides $1.29 Billion Incentive for new Scout Factory
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 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
    • First Drive: 2023 Lexus RZ 450e
    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 > Studies and Surveys > U-M Warns of Rough Road in 2023-24 for Auto Industry

        U-M Warns of Rough Road in 2023-24 for Auto Industry

        Automakers and consumers continue to face challenges as economy cools.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        May 23, 2022

        As the auto business moves toward the second half of 2022, new studies warn the industry faces a range of challenges from the continuing rise of gas prices to fickle consumers sentiment and a stalling global economy.

        car buyers
        Economists at the University of Michigan predict new vehicle sales will rise until late 2023.

        J.P. Morgan now predicts the price of a gallon of gasoline could average $6.20 per gallon across the nation during the summer as the price of gasoline surges another 37% before Labor Day, according to a new report by the bank’s commodities analyst Natasha Kaneva.

        The pace of domestic light vehicle assemblies, however, ramped up markedly March–April, and dealer lots are expected to start filling back up, while the sales pace trends to 16 million later this year, noted a new report from economists at the University of Michigan.

        Meanwhile, light vehicle sales are rising slowly, with the January–April annualized sales pace rising to an average of 14.2 million units from 12.8 million last autumn, the report said. In the U.S., the pace of light vehicle sales could improve to 15.9 million units during the second half of 2022, with the whole year totaling 15.1 million units. 

        Weak consumer sentiment could slow sales

        New cars
        Dealer lots are expected to begin filling back up in the second half of 2022.

        However, sales growth begins to slow in late 2023 and continues into early 2024, as easing supply constraints are counteracted by slowing economic and job growth, rising interest rates and high prices, U-M noted, adding a “historic disconnect between the University of Michigan’s Index of Consumer Sentiment and actual consumer behavior” persists. 

        “The index declined by nearly 30% since May 2021, despite strong consumption and employment growth,” the report said. The low sentiment readings in the consumer survey suggest a risk of prompt consumer retrenchment should the overall economy sour. 

        The volatile economic environment makes the Federal Reserve Board’s job of fighting inflation while engineering a “soft landing” for the economy challenging. The Fed is expected to raise the target range for the federal funds rate at every remaining meeting of the Federal Open Market Committee, pushing the rate to 3% by the end of the year and to 3.5% in 2023.

        New car sales are on fire, despite prices being higher than ever.
        Eventually, rising prices and interest rates are expected to crimp demand for new vehicles.

        Supply challenges remain

        The U-M economists also noted the Russian invasion of Ukraine in late February dashed hopes that the year 2022 would see the global economic environment. The war in Ukraine and sanctions on Russia have already contributed to the sharp increases in energy prices and will likely fuel more consumer and producer price inflation and intensify supply chain strains. 

        A new report from S&P Global Mobility noted the global auto industry continues to navigate a challenging supply chain environment as well as lingering COVID-19 impacts. 

        While ongoing COVID lockdowns in areas of mainland China are having a material impact on production within the country and some surrounding markets, S&P Global Mobility analysts are also seeing a measure of stability in other regions relative to some of the more meaningful downward revisions made in recent months.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        Dealer lot 2021

        March New Vehicle Sales to Rise 6.2% Over Last Year

        Yesterday
        2022 Hyundai SantaFe 7

        Hyundai, Kia Recall Warns Owners of 570K Vehicles to Park Outside

        Yesterday
        Bronco Raptor rock crawling REL

        Ford Facing $3 Billion in Losses on EV Business for 2023

        Yesterday

        One response to “U-M Warns of Rough Road in 2023-24 for Auto Industry”

        1. Jim says:
          May 23, 2022 at 2:41 pm

          “sanctions on Russia have already contributed to the sharp increases in energy prices.” Biden’s shutdown of the domestic fossil fuel industry sanctions contributed to the sharp increases in energy prices.

          Reply

        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: