Any imposition of tariffs on car parts and vehicle imports would severely impact the US automotive industry, most probably leading to more insolvencies.
- Sales have rebounded after a setback in 2017
- Imposition of punitive tariffs could lead to higher insolvencies
- Payments take 30-60 days on average
Following consecutive years of growth, in 2017 the US automotive market recorded the first decrease in sales since the 2008 credit crisis. According to the International Organization of Motor Vehicle Manufacturers, OICA, US vehicle production decreased 8% year-on-year in 2017, to 11.2 million units, while registrations or sales of new vehicles declined 2.2%, to 17.5 million units. That said, car sales have been resilient in H1 of 2018, with many of the larger players posting sales increases. Despite rising interest rates and more choices of late-model used vehicles, strong economic performance, low unemployment and tax cuts have helped to drive sales. The car dealers segment has enjoyed favourable trading conditions in recent years with subsidies, affordable financing readily available and above average consumer confidence.
Read the full report here: Market Monitor Automotive USA 2018