Port Strike Could Disrupt Car Market, Drive Up Prices

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Port Strike,Car Market,Prices

A looming strike by dockworkers at ports along the East and Gulf coasts could severely impact the US car market, leading to delayed inventory arrivals, higher prices for new and used cars, and difficulties in obtaining essential parts for repairs.

The looming work stoppage by dockworkers at ports throughout the East and Gulf coasts could severely disrupt car dealerships around the country. An extended port strike would delay the arrival of new car inventory, which would drive up costs for potential buyers. Not only would it be harder and more expensive to buy a car, but the lack of essential parts and materials would hinder maintenance repairs on existing vehicles as well.

Tom Maoli, owner of New Jersey-based Celebrity Motor Car Co., said that before the pandemic, he was used to having three to six months' worth of inventory on the lot. Today, the business only has about 30 to 45 days' worth of inventory. That means, historically, there would be enough inventory to weather the storm, he said. However, it is a different story today. If the ports shut down, "we are going to burn through the inventory in one month," Maoli said.

 

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