What to expect from the auto industry in 2023
In addition to traditional economic factors, Detroit’s automakers also face collective bargaining with unions this year.
The 2024 Corvette E Ray is displayed, Thursday, Jan. 12, 2023, in Milford Mich.
From supply chain issues to union contracts, a lot of unknowns face Detroit’s auto industry in 2023. With car companies beginning to receive more semiconductors, some analysts are projecting that new vehicle sales will rise — despite uncertainty around inflation.
Paul Eisenstein, publisher of automotive website The Detroit Bureau, says one reason sales could go up this year is pent-up demand.
“We have seen that people want to buy cars but they couldn’t get them because of COVID-related shortages.” — Paul Eisentein, The Detroit Bureau
Listen: What to expect from the auto industry in 2023.
Eisenstein says those shortage have left a lot of cars on the road ready to be replaced.
Beyond sales, collective bargaining between unions in the U.S. and Canada are set to take place this year. Eisenstein says electric vehicles will be a big part of negotiations.
“EVs are expected to require significantly less labor,” says Eisenstein. “They have fewer moving parts — they have fewer parts in general.”
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