READING THE TEA LEAVES - AUTOLINE THIS WEEK 2104

EV Channels Review

This Autoline This Week episode features a panel of chief economists from Ford, GM, and OESA discussing the automotive industry's outlook for 2017 amidst a new US administration. The primary focus is on the potential economic impacts of the Trump administration, particularly concerning trade policy (NAFTA), tax cuts, infrastructure spending, and their effect on consumer and business confidence. Economists express optimism about potential economic growth boosting vehicle sales, while also noting concerns about rising interest rates and trade disruptions. The discussion also touches upon regulatory policy, specifically fuel economy standards (CAFE), with a consensus that market realities like low fuel prices and consumer preferences for larger vehicles necessitate a review of stringent targets. The global market outlook is generally positive, with North America, China, and Europe expected to drive sales, though emerging markets face commodity price volatility. The future of mobility, including ride-sharing and autonomous vehicles, is explored, with a prediction that increased miles traveled could offset fewer vehicles, leading to quicker turnover. Overall, the panel anticipates a strong, albeit potentially flat, US auto market for 2017, with significant upside potential if proposed economic policies materialize.