Parts shortages, high gas prices weigh on U.S. auto market

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Major automakers are expected to report on Friday that first-quarter U.S. car and light truck sales fell sharply compared to a year ago

, with more uncertainty ahead because of parts shortages, high fuel prices and rising interest rates.

Cox Automotive said earlier this week first quarter U.S. auto sales would be the weakest in a decade.could buck the downward trend. The world’s most valuable automaker is expected to report its first quarter deliveries as soon as Friday, and Wall Street had been expecting an improvement from the fourth quarter figure of 308,650 vehicles. However, Tesla has had to shut down production at its Shanghai factory this week to comply with COVID-19 lockdowns.

Consumer intentions to buy a new or used vehicle in the next six months have slumped in March for the second month in a row, and for used vehicles are at the lowest levels in 15 months, according to a survey released by the Conference Board this week. At the same time, the job market is strong and demand for new trucks and sport utility vehicles, as well as electric vehicles, are so strong that average vehicle prices are still at near record levels around $47,000, Cox Automotive analysts said this week.

 

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