Source: Detroit Free Press
The global automotive industry should have a good year in 2017 as industry sales increase in Europe and China and will remain strong in North America, General Motors Chief Economist Mustafa Mohatarem said today in Detroit.
Mohatarem said concerns exist about President-elect Donald Trump’s approach to trade and how that might impact automotive sales in China and relations with Mexico.
But most of the global economy is either stable or improving, so the automotive industry should be on track for a good year globally and in the U.S., even if sales fall below the historically high 17.5 million mark that automakers enjoyed last year.
<img class="expand-img-horiz alignleft" src="http://www.gannett-cdn.com/-mm-/4d33ccc5202124e7cad6faa4b04626efee85c916/c=16-0-2422-1809&r=x404&c=534×401/local/-/media/2017/01/07/DetroitFreePress/DetroitFreePress/636194240790202635-Mustafa-Mohatarem.jpg" alt="636194240790202635-Mustafa-Mohatarem.jpg" width="308" height="231" data-mycapture-src="http://www.gannett-cdn.com/media/2017/01/07/DetroitFreePress/DetroitFreePress/636194240790202635-Mustafa-Mohatarem go right here.jpg” data-mycapture-sm-src=”http://www.gannett-cdn.com/-mm-/9b9d69a17e8cded0df6f0e4067be1a7fab395546/r=500×345/local/-/media/2017/01/07/DetroitFreePress/DetroitFreePress/636194240790202635-Mustafa-Mohatarem.jpg” />
“When you look at the auto industry, other than the two biggies Brazil and Russia, things look really good,” Mohatarem said when he spoke at an event hosted by the Society cheap nba jerseys of Automotive Analysts in Detroit before the Detroit auto show. “South America is where Wholesale Jerseys the problem is. Brazil is in a deep recession.”
The U.S. auto industry broke the annual sales record set in 2015 as sales rose 0.4% from 17.48 million vehicles to 17.55 million in 2016, according to Autodata.
In 2017, the industry’s streak of seven consecutive annual sales increases is likely to come to an end. Most industry executives and analysts say that rising interest rates and gas prices, combined with an end to pent-up demand, will cause industry sales to drop slightly.
In China, Mohatarem said auto industry sales will continue to increase, but at a slower pace. Industry sales also are expected to continue to recover in Europe.
The wild card is the business environment in the U.S. Cheap NFL Jerseys under Trump.
“I am concerned on the trade front,” Mohatarem said.
GM and its joint venture partners sell more vehicles in China than anywhere else in world, including fake oakleys the U.S., so a rocky trade relationship between the Cheap china Jerseys U.S. and China cheap jerseys could hurt the automaker.
“Mexico is a Fake Oakleys key cog in our operations as well,” he said.
Trump has said the North American cheap jerseys Free Trade Agreement has led to the loss of U.S. manufacturing jobs and should be renegotiated. He also has talked about imposing a 35% border tariff on goods imported from Mexico.