There have been some very grim headlines from automotive industry news feeds for about 2 years now, since the beginning of the 21st century recession. The auto industry was one of the hardest hit markets to fall victim to the economic slump, but it looks as though this downturn is now looking up. Analysts in the auto market have been forecasting positive recovery for the year to come. Companies who have been keeping their focus on the future, beyond the recession, will most likely be the first companies to jump start their recovery.
A double whammy recession for the auto industry is not likely, according to analysts. On the contrary, they predict. Good things are to come to auto makers and retailers this year. Many car makers are putting back in place some of the jobs they cut due to the recession. Although some companies are reluctant to do such a thing because they still have not healed from the recession, you will find a surprising number of companies that are reinstating jobs that were lost.
Some of these reluctant manufacturers have barely made it through the recession and still bare the battle scars. It will take some absolute numbers for them to recover. Their logic makes sense. They want to be able to hold on to new employees once they are hired. Just like consumers, these types of companies just need some confidence that the economy is really back on the road to recovery.
Stock piled supplies are not as large as they used to be in retail car shops or manufacturer warehouses. Although you will not see an overly loaded car dealership, you will see new models coming in for the bright predictions of recovery, just not in the quantity we are used to seeing. The economy is sending signals that we should get ready for a recovery, but it will still take some more time to encourage both the consumer and the retailer to spend on new cars.
Auto industry specialists gathered to come up with innovative ideas to move the car market forward. Most companies are moving forward but with extreme care. They are being encouraged to take the lead and stimulate the economy for further gain. After nearly two years of abiding to strict budgets, consumers are now ready to splurge on a big ticket item such as a car, and dealers are being encouraged to take advantage of this big spending nostalgia.
It is precisely due to this reason that after the recessions of both the 80’s and 90’s one of the first places on the market to recover was the auto industry. Experts are hopeful this will happen now as well. When people see positive signs of an economic recovery the chances of them buy a car increases.
Finally, some good automotive industry news! A positive forecast is much needed for this market. But wait. There may be a downside for you as a consumer. A car that you will purchase this year could cost you a little more than it would have if you had bought it last year at this time. After several months in a recession car makers really want to see profits rise. One way to see them rise is to charge you more. Although not all car makers are raising prices it would be wise to do your homework before you go out and buy a new car.