We all have different metrics to tell us how the economy is doing and depending on where you live, one of the metrics most widely used is auto vehicle sales. In theory, vehicles should last longer but many people enjoy the new car feeling and once their vehicle either reaches a specific age or mileage driven, they are looking to buy a new vehicle. For some cars are a thing to move from point A to point B, while others see their vehicles as part of their status and there are many variations in between. Auto shows continue to draw people and many are interested in how the auto industry is doing.
In an article from the Associated Press, Ford annouced increase production of 6 models to meet the demand. For more than 2 years, sales have been limited due to the shortage of computer chips, but the chip shortage is easing and more cars are rolling off the assembly lines.
In 2022, vehicle sales were 14 million, however LMC Automotive sees sales increasing to 15 million this year. Ford sales were up 22% in February.
GM is increasing sales as well.
According to J.D. Power the average vehicle sold for $46,229 in February.
Linking to dividend paying stocks, we all look to some industries as bell weather industries and for the most part it is true. If sales are increasing at the auto industries, financing is doing well because people can buy new or used and pay their bills. Industries similar to the auto industry have good ripple affects on the economy as most of the parts are contracted out and those factories are busy, and the ripple goes on. For your investments do you know the ripple affects and which companies are bell weather companies?
There are more questions than answers, till the next time – to raising questions.