
A Most Illogical Buying Spree
Greetings. I am Spock Science Officer of the Starship Enterprise. It appears a most illogical situation is unfolding within the United States' automotive market. According to recent reports the acquisition of both new and pre owned terrestrial transportation vehicles is experiencing a surge of... shall we say... 'frenzied' activity. This is attributed to the looming threat of increased tariffs a development that even I find... perplexing. As Mr. Smoke of Cox Automotive states consumers are attempting to 'get ahead of tariffs' an endeavour that smacks of attempting to outrun a temporal paradox. The days' supply of new vehicles has plummeted from 91 to a mere 70 while used vehicles have dwindled to 39. This is by any standard 'fascinating'.
Sales Figures: Engaging!
The numbers Captain they do not lie. Current new vehicle sales are exceeding last year's seasonally adjusted pace by a substantial 22%. A similar trend is observed in the used vehicle market which has seen a 7% increase compared to the previous year. Such enthusiasm is of course 'good for the automotive industry,' as the humans say. However I can’t help but wonder is this all just a giant Pon Farr a mating frenzy before the inevitable automotive winter? It could be a short happy life!
The Kobayashi Maru of Tariffs
The situation presents a classic Kobayashi Maru scenario: a no win situation. Telemetry predicts a potential reduction of 2 million vehicle sales annually due to increased production costs. Automakers may attempt to mitigate these costs but ultimately the burden will likely fall upon the 'price conscious' consumers thereby decreasing the sales rates which will create a feedback loop that is if you will forgive my Earth idiom ‘worse than tribbles.’
Trump's Gambit: A Calculated Risk?
The article references President Trump's ongoing 25% auto tariffs which are projected to cost the industry $100 Billion and decrease sales by millions. The political implications are obvious but the question remains is this a carefully calculated risk or an act of pure unadulterated… irrationality? Trump has stated that he intends to “help some of the car companies”. What does it entail? I can only wonder.
Employee Pricing and Gross Profits: A Vulcan Paradox
Ford and Stellantis are offering 'employee pricing' deals a tactic that is both logical and illogical. Logical as it reduces existing inventory. Illogical as it diminishes gross profits as Mr. Anderson of Missouri elucidates. The question of whether this is a sustainable practice remains open depending heavily on the capricious 'tariffs'. One must wonder is this a bold move or merely rearranging the deck chairs on the Titanic? Highly intriguing.
To Tariff or Not to Tariff: That is the Question!
The future of the automotive market remains uncertain pending the resolution of the ongoing tariff situation. Chairman Elkann of Stellantis has expressed optimism towards Trump’s stance but one must remain cautious. As Spock once said 'Change is the essential process of all existence.' Whether this change will be beneficial or detrimental remains to be seen. However one thing is clear: the current trajectory is to put it mildly 'fascinating'. Live long and prosper... or at least get a good deal on your next car.
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