The car industry has so far ridden out the shocks of Covid and subsequent supply chain disruption surprisingly successfully, at least as far as profits have shown.
But the greatest shock might yet be around the corner and that could be much harder to overcome: a collapse in demand.
The consumer’s desire for new cars has so far outstripped the limited supply, allowing car makers to pare back marketing costs, including discounts, and focus their attention on the pricier cars making the most profits. Car makers could even pass on the cost of rising raw materials without worrying too much about the effect on orders.
