Interest rates, slow economy weigh on U.S. auto dealers, Cox Automotive says

Atlanta-based Cox Automotive, operator of Manheim car auctions and brands including AutoTrader.com, Kelley Blue Book, said earlier: "U.S. automobile dealer sentiment in the fourth quarter of 2022 dropped to the lowest level since the start of the COVID-19 pandemic, according to the Cox Automotive Dealer Sentiment Index . At 43, the current market index is below the threshold of 50, indicating that more dealers view the current auto market as weak than strong. The index is down 6 points quarter over quarter, down 17 points year over year, and well below the pre-pandemic average of 48.The current market index peaked at 67 in Q2 2021 and has been losing momentum every quarter since. U.S. auto dealers indicate that their negative view of the market is influenced by the economy, higher interest rates and low inventory."High interest rates and a generally slowing economy are clearly weighing heavily on U.S. auto dealers right now," said Jonathan Smoke, Cox Automotive Chief Economist. "Dealers are normally optimistic, so the drop in the 3-month outlook to a new low in our survey history is particularly noteworthy. As the year began, dealers were telling us about one obvious problem: Inventory. Now, as 2022 comes to a close, it’s all about the economy and interest rates." Publicly traded companies in the space include Ford (F), General Motors (GM), Honda (HMC), Mercedes-Benz Group (DDAIF), Nissan (NSANY), Stellantis (STLA), Tesla (TSLA), Toyota (TM), Volkswagen (VWAGY). Reference Link