Though demand remains high, easing supply chain issues have led to an overall uptick in automotive production over the past few months, which has resulted in a decline in new vehicle prices, albeit a relatively small one. With inventory improving and interest rates – along with pricing – still relatively high, it stands to reason that demand will eventually cool off as well, which could lead to more significant price reductions as soon as the end of the year, according to a Yahoo Finance.
According to a recent report from UBS Asset Management, global automotive production is expected to exceed sales by around six percent in 2023, which would leave five million vehicles sitting unsold on dealer lots. Historically, this has led to steep discounts and incentives as dealers work to move that old inventory off lots and make room for the new model year, which is likely to occur at some point in late 2023.
“Given the bullish production schedules, we see high risk of overproduction and growing pricing pressure as a result,” UBS said in a recent note to clients. “The price war has already started unfolding in the EV space, and we expect it to spread into the combustion engine segment [during the second half of 2023].”
This movement is already evident in the all-electric vehicle space, where Tesla has slashed its new vehicle prices across the entire lineup over the past few months. FoMoCo and other automakers have since followed suit, cutting prices of its two chief EV models – the Ford Mustang Mach-E crossover and Ford F-150 Lightning pickup – by a significant margin. With demand for these models falling, The Blue Oval also recently pushed back its goal of production 600k EVs annually this year, as well as its two million planned production rate, which was originally supposed to occur by 2026.
We’ll have more on the state of new vehicle prices soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.
Comments
Many dealers still sitting on 22’s.
Prices are sky high & people are speaking with their wallet closed.
Better to find a good used car/truck, put a few grand into it & flip off the OEM’s & dealers!
Good.
I’ve been in the market for a new truck but the prices that the automakers are asking for these trucks are beyond absurd. Couple that with crippling interest rates and feature removal/deletion, all the smart buyers are sitting on the sidelines waiting.
When Ford can get me a loaded f150 platinum BAP with a V8 and 4×4 for ~60-65k again, then I will buy. At 84k, absolutely not
You are going to suffer like we’re suffering. It’s a viscous circle. Pricing to high bites us and it bites you in the end. You have the majority of buyers right now on social security. We’ll walk before we buy something as expensive as a house that depreciates faster than you can pay it off
AGREED!!
Super duty’s will stay the same price because that is fords bread &butter what the problem is theas Jack leg dealership marking up 10000$ $ over msrp lake Keowee ford in senaca sc has trucks on the lot they have had since may 23 the general public is tired of this bull$hit rip off dealers I hope they never sell another truck there are good dealers out there like benson ford in Easley sc that works with people to get there business and a return to them when they are ready to trade again beware of lake Keowee ford senaca sc
Which model of vehicles and models have hands free Blue Cruise? As example when I search under: “Does the 2023 Ford Explorer have Blue Cruise?” Ford tells us all about safety features that the Explorer offers but It is silent about Blue Cruise. I am specifically interested in Explorer and Expedition models.
The UAW Strike will solve the overstock problem. Then when it’s over, of course we will have supply shortages and sky high prices again. This is all planned.
It is rather interesting that both sides appear to want a strike isn’t it? Wild demands on both sides, no real urgency behind it. Kinda reeks…
The problem Ford will have is that it’s vehicles have a major price issue vs rivals. F150 powerboost platinum is 84k fully loaded, tundra hybrid platinum is about 70 fully loaded, maybe with a few less speakers, and no big onboard inverter, but otherwise very similar. That’s a BIG price delta. If the big3 strikes, Toyota is going to pick up a lot of sales (not that they can keep up with demand already).
All automakers will merge to become Trabant II , the official brand of the new CCPStates (formerly USA) offered in one EV only style if we re-elect the current administration in 2024 to continue. Time for change.
Right now the UAW is demanding a 45 percent wage increase over 3 year contract! If you think vehicle prices are high now just wait!
Dealers are not taking off their sky high ADMs. I recently look at a 2 dr Bronco it had a MSRP 43k the dealer ADM made the price 63k and they would not budge on the ADM so I walked.
Also Ford has raised the price of new vehicles 42 percent over the past two years with a corresponding drop in quality this is greet and profit at any cost attitude. I have bought only Ford for 30plus years but Fords current products, price and very bad quality will unfortunately have me looking at other brands but not from any of the so called big 3.
The insane and unrealistic push into EV production is going to be a catastrophic failure for Ford specifically. Telling the market what it wants instead of listening to what it wants has zero chance of success. The niche market of EV’s is filling up fast and demand for Ford EV’s is about to evaporate. The inevitable return to customer desired vehicles will cost Ford billions and billions of dollars. It will rightfully lose Farley his job and potentially bankrupt Ford.