First quarter U.S. sales of light-duty vehicles totaled 3.29 million, one of the worst single quarter tallies in a decade. The only quarter to post a worse result was the second quarter of 2021 at the height of the pandemic.

In this article we take a look at the changing tire industry and how the impact of ever-changing tariffs prior to the arrival of the pandemic and a precipitous drop in the number of miles driven during its height in 2020 have now been further exacerbated by reduced production output, increased raw material pricing, shipping delays and higher import costs.

The automotive industry is on a long march toward a future which, will no doubt, look and operate much differently than what we experience today.

This time last year the automotive industry was only cautiously optimistic. The last stimulus payment was to be made March 15 and enhanced unemployment benefits were scheduled to cease in September, so there was concern that sales might decelerate in the second half of the year.

Hobbled by a global pandemic, the U.S. light vehicle market only managed to sell 14.6 million vehicles in 2020. Sales tumbled quickly with the onset of stay at home orders, slumping to a 50-year low before staging a steady recovery.

For the six companies that comprise the Hilco Parts Index (the Index), net sales were $71.2 billion for the 12 months ending with the third quarter of 2021. Compared with the same period in the prior year, sales increased 11.4% on a nominal basis.

Our private equity (PE) owned client based in Windsor, Ontario operates in the automotive and industrial tool manufacturing industries.

When has having too little inventory ever been a problem for the U.S. automotive industry?

In a word, the Automotive Aftermarket is “pleased” with its second-quarter results. We experienced our first normal winter weather in three years and the industry is benefiting. For the six companies that comprise the Hilco Parts Index (the Index), net sales were $69.8 billion for the twelve months ending with the second quarter of 2021.