| Hi Taylor:
Any interesting trends in the auto industry for the coming year? Feels
like after the slump that was 2020, we should be in line for some
interesting things. - Arnold
Hi Arnold: You and I have a mutual interest. I'm always car shopping
with my eyes, and also mindful of what direction investment strategies
might be going. Don't cash in on my thoughts too quickly, but here
are some things that have caught my eye.
trucks. It looks like a handful of companies have figured
out how to merge eco-friendly and payload capacity. Ford, Rivian,
Lordstown Motors and other manufacturers have announced models
that seem to satisfy truck enthusiasts. I'm sure there are still
plenty of kinks to work out, but my gut tells me it won't be long
before we see the roads filling up with big, powerful hybrid vehicles.
I'm especially interested to see which companies bring these new
models into their fleets, as that will be a good way to gauge
how soon the general public will get on board.
2. Online shopping. Naturally, the pandemic slowed down
visits to used car lots. As things get back to normal that trend
will level out, but this also seems like a service that will only
get more popular now that it's thoroughly entered the mainstream.
There will still be all the sales tactics and lot perusing for
traditionalists, but the number of online sales will continue
to rise as dealerships and third-party sellers make that option
more available. Depending on how steadily online sales rise, I
wouldn't be surprised if more dealerships start offering home
delivery on vehicles above a certain price point. At that point,
we can expect other tech and gig services to start getting involved
3. More of the same. I'm excited about the above trends
and other new releases, but I'm not blind to the fact that the
auto industry looks relatively similar to how it has in years
past. Sedans are getting sleeker, electric cars and hybrids are
more accessible, SUVs keep adding bells and whistles and cargo
space. The global shift toward cleaner energy will continue pushing
the needle for car manufacturers, but we haven't reached any sort
of tipping point yet. We'll check in again next year to see if
2021 was the year everything flipped.
| The car industry
won't ever leave us-it'll just keep adapting as consumers' needs evolve.
It's exciting and challenging for us investors to keep up, but definitely
worth the effort. Happy New Year!
© Taylor Kovar
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