DETROIT, MI – A substantial part of Lansing’s economic engine is still stoked by the automotive industry. Now a new projection of softer than expected new cars sales in 2022 could dampen expectations for economic growth in the state’s capital city.
Cox Automotive’s initial sales forecast of 16 million new vehicles sold in 2022 has been reduced a second time, with this week’s adjustment lowered to 14.4 million. The global microchip shortage and resulting supply chain woes are to blame and are expected to limit auto dealer inventory the rest of this year.
Cox’s modified forecast of a 19.3% decline in second-quarter sales compared to Q2 2021, and 17.0% sales drop for the first half of the year is rather severe, according to auto sector observers.
Cox Automotive does predict General Motors will re-take the sales leader crown from Toyota in Q2 2022, with an estimated 575,911 vehicle sales vs. Toyota’s 543,819.
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