The Other Side of Declining Auto Sales

US auto sales results for June might not be what it appears. Automotive News reports that sales would have been better if automakers
had had enough four-cylinder engines to meet demand.

Rising gasoline prices
have generated a solid demand for four-cylinder cars – the highest since the 1980s.

The Power Information Network reports that more than half of all new cars and trucks purchased in June were powered by four-cylinder engines compared with less than one-third of new vehicle sales one year ago.

In every sales forecast, there is an implicit assumption about costs.

What are the energy cost assumptions underlying your sales forecasts? What are the competitive implications? Is there an opportunity there that your competitors might not embrace?

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