The Automobile Industry
The U.S. automobile industry has been experiencing considerable turmoil. A year ago, sales soared in response to widespread dealer incentives, primarily zero-percent financing, but since then consumers have come to expect such incentives and are less responsive to them. Although sales were sluggish this September, production has held up better in 2002 to date than in 2001. At this point, production and sales appear to be well balanced at the industry level; dealers’ inventory-to-sales ratio has rebounded from last fall’s abnormal low to a level closer to the one they held over the 1999–2000 period.
Suggested citation: "The Automobile Industry," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-11, pp. 11, 11.01.2002.