Midweek Auto News Update From COX

New-vehicle sales in April likely beat Cox Automotive’s optimistic forecast, as improving inventory and incentives, higher fleet deliveries, and sufficient retail demand continues to power the market to an upside surprise. Good news for retailers and automakers, but most certainly not the data Fed Chairman Jerome Powell was looking for.     Powell will be stepping to the microphone again later this afternoon, at the conclusion of the latest Federal Open Market Committee meetings, and expectations are the day will end with interest rates moving higher. Again. Cox Automotive Chief Economist Jonathan Smoke will be listening; look for his thoughts later today in the Newsroom. In the meantime, for your listening pleasure, and with a salute to the glory days of K-tel, here’s a fresh playlist from Jonathan, our resident DJ: Don’t Stop the Music, an Ode to the Fed.

The Used-Car Factory Shut Down In new content posted this morning, Brian Finkelmeyer, Cox Automotive senior director of New Car Solutions, takes a look at how recent history is now reshaping our near-term future. Indeed, puny new-vehicle sales over the past few years are already resulting in low used-vehicle inventory, as everything new is eventually used. As Brian notes, reflecting on production disruptions and slow sales during and after the pandemic, “We didn’t fully appreciate what was happening at that moment, but the industry was experiencing a used-car factory shutdown.”   Read the report: Why Are Prices So High? The Used-Car Factory Was Shut Down.   Q1 Financial Results The Cox Automotive Industry Insights team continues to zero in on the topline sales results that underpin the recent financial announcements from the industry’s biggest players. Reports on U.S. sales, share, inventory, prices and incentive spending have been posted in the Newsroom for General Motors, Hyundai, Ford and Stellantis.   If you are keeping track, look for updates on Honda, Nissan, and Toyota next week as all three report their quarterly results. Happy Fed Day, to all who celebrate!     Search, Explore, and Discover!