Weather is unpredictable. Yet, some states in the United States did not expect extreme weather to cause trouble. The automakers in Detroit were affected, such as Ford, Toyota, and Nissan. They had to slow down production in some factories, or worse-shut down their plants due to the winter blitz.
The freeze overwhelmed the power grid in Texas. The supplies of natural gas from Texas to Mexico were interrupted as well. It left millions of households and industrial plants without power.
The shutdowns affected vehicle production across North America. The assembly plants in Michigan were also affected by the extreme weather.
High demand in pickup trucks
Despite the dwindling economy, many consumers are still interested in buying new vehicles. Many people are choosing trucks for business purposes and even for personal use.
In the United States alone, pickup trucks outsold the sales record of passenger cars. Since April 2020, truck makers have sold over 17,000 units. Now, it is considered the best-selling vehicle in the country.
Texas and California have the most extensive inclination company data for pickup trucks. Over 4 million trucks are in the Lone Star State, and about half a million in the Golden State. Texas is big on farming. People use their pickups for agribusiness, so most truck buyers in the area use them as workhorse rigs. In California, most truck owners use their vehicles for daily driving.
In 2021, many people were interested in buying a new pickup truck. Despite the strict lockdowns, the sales increased to 40 percent for GM, Ford, and FCA. However, the limited stock made it difficult to acquire nowadays.
Inflation
If you waited the previous year for car and truck prices to fall before purchasing, you would have to wait a little longer.
The auto industry is currently experiencing car inflation . Over the last 12 months, it has lifted the prices across the board, including the car market. According to Goldman Sachs, the costs of used and brand-new vehicles will increase in 2022.
In 2021, used cars and pickup trucks will be among the biggest EG Lists drivers of inflation. Brand-new vehicles have seen some gain, but only a measly 11 percent. Dealers of brand-new cars experienced revenue loss as the global chip shortage left them struggling with low to zero supply. The prices of secondhand vehicles soared to more than 30 percent. Buyers couldn’t buy new cars, so the used market flourished.
