Tag: The Great Squeeze
-
Cox Automotive’s Chief Economist Jonathan Smoke Answers TheLoganZone, Citing “Record” Repossessions Driven by Student Loans & “Negative Equity Trap”
The automotive market is in turmoil, with record repossessions driven by two key factors: loans from the inflated 2021-2022 bubble and the resumption of federal student loan payments. Jonathan Smoke, Chief Economist at Cox Automotive, clarifies that these pressures uniquely afflict vulnerable consumers, revealing a targeted crisis rather than systemic collapse.
-
BREAKING ANALYSIS: Manheim Report Shows Wholesale Prices Holding Stubbornly High, Defying Retail Weakness
The latest Manheim Used Vehicle Value Index reveals a striking disconnect in the auto market, with wholesale values stubbornly stable despite retail demand weakening. While luxury vehicles and EVs show growth, compact cars and pickup trucks face alarming declines. This precarious balance creates a challenging environment for dealers, intensifying the market’s pressures.
-
The $145 Million Exit: A Special Investigation into GM’s Executive Stock Sell-Off
General Motors CEO Mary Barra’s staggering liquidation of over $145 million in stock signals a catastrophic lack of confidence from the company’s leadership. As executives systematically exit while failing to reinvest, it raises haunting questions about the economic climate. This isn’t just a GM issue—it’s a flashing warning for the entire U.S. economy.
-
BREAKING ANALYSIS: PPI Report Shocks with a Drop, But Key Auto Costs Tell a Different Story
In a deceptive twist, while the Producer Price Index hints at economic relief, the auto industry remains mired in relentless cost pressures. The “Great Squeeze” persists, with rising raw material prices decimating profit margins. Brace yourself—no discounts in sight. Automakers will shift focus to high-margin offerings at your expense.
-
BREAKING ANALYSIS: U.S. Auto Sales Defy Tight Inventory, Remain Strong at 16.1 Million Pace in August
The U.S. auto market for August showcases remarkable resilience with a 16.1 million SAAR, driven by soaring consumer demand despite dwindling inventory. Hybrids are dominating the scene, epitomizing the growth narrative of 2025. Yet, as sales rise, automakers grapple with soaring production costs, balancing profits amidst strong demand.
-
The Great Squeeze: Why Strong Demand and Exploding Costs Have the Auto Industry Trapped
The U.S. auto industry is ensnared in The Great Squeeze—strong consumer demand clashing with skyrocketing production costs. Automakers face profit margins under siege, compelling them to abandon affordable vehicles for high-margin models. As consumer budgets tighten, stability crumbles, heralding a ruthless transformation where cars become mere subscriptions and deals vanish.
TheLoganZone 