P&A Providers & Administrators
MenuMENU
SearchSEARCH

Auto Execs Say Consumer Demand Remains Strong

GM and Ford top execs say U.S. consumer demand for cars and trucks remains strong, despite soaring interest rates and gas prices.

June 16, 2022
Auto Execs Say Consumer Demand Remains Strong

GM Chief Financial Officer Paul Jacobson

Credit:

GM

2 min to read


General Motors Co. and Ford Motor Co. top execs say U.S. consumer demand for cars and trucks remains strong, despite soaring interest rates and record high gas prices.

The Federal Reserve boosted U.S. rates on Wednesday to combat a surge in consumer prices. Rate hikes, costly gas and inflation have spelled disaster for Detroit's automakers in the past.

Ad Loading...

"We have not seen signs of weakening demand," GM Chief Financial Officer Paul Jacobson told investors at a Deutsche Bank conference. New vehicle prices are high while inventories of unsold cars and trucks remain at historic lows, he said.

GM has offset $5 billion in higher supply chain costs by raising prices and cutting expenses, Jacobson said. He reaffirmed GM's earlier financial targets and its goa to increase vehicle production for 2022 by 25-30% over 2021.

Ford Chief Financial Officer John Lawler reported demand remains strong as prices stay steady.

But Ford’s credit arm, he says, has started to see loan delinquencies increase, a potential indicator of softer demand. He added that the higher delinquencies are not a concern yet because of extremely low delinquencies before.

Both Lawler and Jacobson reported low inventory will benefit their companies if U.S. economy head into a recession.

Ad Loading...

Jacobson said GM executives are watching for signs of a slowdown while Lawler said Ford has done modeling on the potential impact of both moderate and severe recessions.

Low inventories are a benefit if a recession occurs. In the past, the Detroit automakers and their dealers carried two to three months' worth of vehicles on their lots. When the recession decreased demand, they were forced to offer deep discounts to sell old vehicle models.

"We are not going to go back to the high inventories that we had in the past. We've targeted 45 to 55 days and we're going to stick to that," Lawler said.

GM's also is taking a cautious approach to adding staff, and is reviewing capital spending plans, Jacobson said. He maintained the company would not cut long-term investments in electric vehicles, software and other new technology that may drive revenue growth.

Originally posted on Auto Dealer Today

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →