Part 7/9:
The underlying issue plaguing the auto industry extends notably to the inventory levels across various markets. In the United States, wholesale and retail inventories surged significantly in 2024. As production rates continued to accommodate expected demand, inflated inventories have placed additional strain on dealers and manufacturers who are now forced to navigate through excessive stock.
While the prospect of tariffs could exacerbate these issues, experts suggest that the root of the problem lies not with potential tariffs but within the economic fundamentals that have faltered over the last few years.