b'THE YEAR OF THE AUTO 2023INDUSTRY COMEBACK?Is 2023 the Comeback Year for the Auto Industry? Is it the real deal or a post-pandemic teaser? Tesla emerged as a major exporter from its factory in Shanghai starting last year.By George Lauriat, AJOTFebruary 2023Published in AJOT Issue #750I s 2023 the real Comeback Year for thewere sold in the U.S. in 2017, 2018 andsupply constraints have led to long lead globalautoindustry?Oristhisyear2019 compared to the surge of 13.4 mil- times for new vehicles, and in the process simplyateaserayearofunfulfilledlion units in the 2022 rebound. And it isntensuredthattransactionpricesarewell promise.a question solely being asked in the U.S.above historical norms, as MarkLine, an WiththeCOVID-19pandemicslock- In Europe in 2019 auto sales tallied 15.66auto industry portal wrote describing last downs and the idling of auto plants, 2020million units and only 10.15 million unitsyears conditions.was the Lost Year for the auto industry.in 2022, the lowest since 1993. The microchip shortage was particularly Thefollowingyear,withthepandemicsSo, is this the beginning of a return todamaging. To handle the chip (and parts) impactslessening,andtheautoplantsnormal for the global auto industry orshortage, GM pioneered a strategy tagged around the globe returning to production,something else altogether? build-shy or shy-built which involvedassem-auto sales again ramped up. And the autobling some of its vehiclesgenerally the sales built into Tsunami 2022, as pent upSpinning Wheels: Finding Contextlower priced modelsjust shy of all its consumer demand drove up prices bothin the Auto Industry parts. So, rather than delivering complete fornewandusedvehicles.Throughoutvehicles to the dealerships, the unfinished 2022globalautomakersstruggledtoThroughout2021-2022therewereamodels were set aside in nearby lotsawait-maintaininventorytokeepupwiththenumber of issues that dogged automakersingparts.Insomecases,theparts-shy surge in demand.as the plants returned to full production.vehicles were sold to consumers and the Still,evenwithhistorichighaverageFromthesalesside,inventorycouldntmissing parts fitted later at the dealership.prices for autos in 2022which left U.S.keep pace with the surge in demand. PartHowever, the chip shortage has eased, cardealershipsawashinmuchneededshortages, especially microchip shortages,and the acres of vehicles are now moving cashthequestionlingeredoverthehamstrungautoproduction,leadingtooff the storage lots to dealers and cus-sales recovery, was this the real deal orlong lead times for deliveries, while othertomers. simply a post-pandemic consumer buyingsupply chain disruptions exacerbated theWhile supply chain disruptions and part spree? dealersinventorycalamity.Thiscombi- shortageshavelessened,otheraspects After all, over 17 million light vehiclesnation led to higher auto prices, In 2022,of the fourth quarter of 2022 have spilled Back to Contents THE UNCONTAINED 23'