Part 12/14:
Dealerships are under immense pressure, with many predicted to fail if they do not adapt quickly to the oversupply of inventory and declining demand. The once robust market for middle-class vehicles has crumbled, replaced by prices that price out the average consumer, leading to decreased sales, increasing negative equity, and widespread financial strain.
Conclusion: A Warning Sign for the Future
The current trajectory of the U.S. auto industry seems to mirror a market nearing collapse. Excessive inventory, rising costs, decreasing demand, increasing negative equity, and mounting debt collectively paint a bleak picture. The industry’s overreach—driven by overproduction and misjudged consumer appetite—has created a bubble that may soon burst.