Bobby Wilkinson Ottawa recently discussed the toll 2020 and COVID-19 took on the auto industry.
The year 2020 was the worst since the Great Recession for the auto industry. However, despite major setbacks, the industry began to make a sharp turn-around as 2021 grew closer. Auto industry worker Bobby Wilkinson Ottawa recently discussed the toll 2020 took on the auto industry.
Sales for the year 2020 were down 15 percent from 2019. The industry sold roughly 14.5 million vehicles in 2020, and about 17.1 million just one year before. However, Bobby Wilkinson Ottawa explained that this is far superior to the 10 to 12 million vehicles experts projected to be sold in 2020. This is because the year ended on a much more positive note.
“The industry took a major downward turn when people were forced into lockdown in March and April 2020,” Bobby Wilkinson Ottawa said. “Dealers had to close their showrooms and sales were halted for a period of time.”
However, Bobby Wilkinson Ottawa explained that sales began to rise again as companies took sales online and started making contactless deliveries. People living in crowded city centers also began opting for personal vehicle use rather than public transportation, and many even moved away from city centers entirely. This meant many people had an increased need for a new vehicle.
Bobby Wilkinson Ottawa stated that vehicle sales also likely would have been even higher if factories weren’t forced to shut down due to the virus. This set production behind and has resulted in higher prices with fewer incentives. The average price of a vehicle sold in December 2020 rose more than 5 percent. Across the board, this was a roughly $1,950 rise in pricing per vehicle.
Bobby Wilkinson Ottawa explained that an increase in price moved many middle-class buyers away from a purchase that likely would have taken place at a slightly lower price point.
Bobby Wilkinson Ottawa finished by stating that buyers finally began coming back to the market at the end of 2020, and they’re expected to continue buying as consumers continue shifting back to normalcy.
“We believe the arrival of the COVID-19 vaccine will begin to take sales much higher this year,” Bobby Wilkinson Ottawa. “When people can return to work and other activities as normal, they’ll feel more confident in their finances and more open to purchasing a vehicle.”