![]() ![]() The result could be more deals, more sales, more negotiating room and maybe even price reductions.Įarlier this month, Ford announced a nearly $US10,000 price reduction for the F-150 Lightning, an EV. And, companies will have less power to raise or even maintain prices. The Bank of Canada will be more open to stabilizing and then lowering interest rates when it sees less resilience in spending. More cautious spending will weigh on the economy and potentially contribute to a recession. The latest consumer spending tracker from RBC Economics showed continued strength in restaurant spending between April through June. When restaurant prices jumped, people ate it up. When vehicle prices soared people paid up for new cars and SUVs that wouldn’t be delivered for a year. When renovation prices soared, people still wanted new kitchens. When companies raised prices on discretionary items, consumers went along in many cases. Inflation over the past 18 months has been attributed to supply chain interruptions and scarcity of manufacturing components like microchips, but there’s another angle on this. Vehicle prices are high, and so is the cost of financing as a result of high interest rates.Ī decline in consumer spending will restore some balance to pricing of the goods and services we buy. There are issues with range, with the availability of charging stations and the complexity of new vehicle technology and features. All the reasons why demand for EVs has stalled were covered in a recent discussion on Reddit’s Canada page. ![]()
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