Car demand to remain strong into next year: AutoNation CEO

Fox Business’ Gerri Willis reports shortages of new cars and global chip crunch is creating high demand for the used car market

Strong demand for automobiles is showing no sign of slowing, according to AutoNation CEO Mike Jackson. 

Consumer demand for personal transportation surged during the COVID-19 pandemic as Americans preferred to ride in their own vehicles as opposed to taking public transportation or carpooling. Demand was also supported by several rounds of government stimulus checks and ultra-low interest rates.

Ticker Security Last Change Change %AN AUTONATION, INC. 106.34 +3.74 +3.65%

“Consumers are buying vehicles before they even arrive at our stores,” Jackson said on AutoNation’s second-quarter earnings call on Monday. “We expect the current environment of demand exceeding supply to continue into 2022.”

The auto market has faced severe dislocations coming out of the pandemic as lockdowns aimed at slowing the spread of COVID-19…

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