In a time where so many industries are hurting, the auto industry has completely thrived in the third sales quarter. Not just by pandemic standards, they are out performing previous third quarter performances. This is not to say that the auto industry didn’t suffer previously in the year. However, many companies are making up for their losses this quarter.
Fiat-Chrysler raked in record profits. Ford has already paid back the 15 billion dollars that they took out to assess the fallout from the pandemic. General Motors doubled their sales from what Wall Street projected. This over performance can simply be accredited to buyers wanting to spend their money on something new and shiny. What’s better than a brand new car?
Those who are fortunate enough to keep their job are most likely saving much more than they typically would, not going out as much and not having more than the essentials to pay for. With extra money in their piggy banks and with colder weather approaching, buyers have gravitated towards large four wheel vehicles. Ones that will keep them safe and warm during these unprecedented times.
This spike in sales is great news for the auto industry for obvious reasons. One major reason being that they desperately needed to make up loss of sales from the first half of the year. However, the biggest reason that auto companies needed this boost was for a big future investment: electric cars. Every company in the automotive business is eyeing this next big thing. And they cannot do that without the proper funds.
What do you think about the boom of the auto industry? Let us know down in the comments.
This article originally published on GREY Journal.