Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Tire
    • Airless Tires
    • Non-Tire
    • More News
    • Suppliers
    • Silicone
    • Latex
    • Technical Notebooks
    • Opinion
    • Online Exclusive
    • Special Reports
    • Automotive
    • Executive Action
    • Government/Legal
    • Sustainability
    • Blogs
      • Products
      • Wacky World of Rubber
    • Best Places to Work
    • War in Ukraine
    • Rubber Division IEC
    • ITEC
    • Women Breaking the Mold
  • PFAS
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • PFAS Live
    • Ask the Expert
    • International Tire Exhibition & Conference (ITEC)
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Opinion
March 18, 2021 09:47 AM

Editorial: Auto industry's rebound a bright spot in difficult year

Rubber & Plastics News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    When it came to managing the COVID-19 pandemic, OEMs and suppliers did a lot of things right.

    They realigned supply chains, managed finances, leaned into technology to stay connected with employees and customers, and re-imagined safety protocols to curb the spread of the coronavirus. Some even jumped into the medical production space to help meet domestic and global demand for ventilators, hand sanitizers and personal protective equipment.

    All things considered, the industry has validated its resiliency in the wake of 2020.

    Ultimately, though, what carried the industry through an incredibly difficult year was the unwavering demand for new vehicles. Sure, sales fell amid lockdowns, but they rebounded quickly when dealers opened their doors again. In fact, sales were better than expected, according to analysts.

    And while that's good news for the industry, overall, it's also indicative of the demographics of new-car buyers.

    The pandemic has and continues to disproportionately impact individuals and families with low and modest incomes. They are more likely to contract the virus, have underlying conditions that worsen the virus' impact, and are more likely to have lost jobs, making necessities unaffordable.

    Feeding America said it served 4.2 billion meals between March and October 2020, and saw a 60 percent surge in demand for food.

    So at the same time food banks around the country saw miles-long lines of cars with people waiting hours—or even overnight—to get a few groceries, new car dealers were struggling to keep enough inventory to meet demand for some vehicles.

    Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research, noted that in the latter part of last year auto makers even "pulled back on (incentives) because the inventories were so tight and the sales response was so strong."

    That's because those with higher income levels were more likely to continue working at the start of the pandemic. Many did so remotely, which helped to mitigate their chances of getting COVID-19. Others had savings to carry them through a couple of difficult months.

    Americans with higher income levels have banked a lot of money in the last year, too. S&P Global estimates that U.S. households saved $1.6 trillion more than they would have in a typical year. That adds up to a lot of pent-up spending power, which also bodes well for the auto industry in the years ahead.

    It's easy to be excited about the perseverance demonstrated by the auto industry in the last 12 months, and that excitement is warranted. The rebound of the auto industry in 2020 and the outlook for the years ahead means a lot of jobs saved, and the economic impact of those jobs is important.

    But as we celebrate, let's not forget the toll the pandemic has taken on our neighbors. We're among the lucky ones. Let's be sure we're taking care of others along the way.

    Related Article
    New legacy taking shape at Stockwell Elastomerics
    Column: Discussions of race, equality may mean uncomfortable moments
    Editorial: Associations see opportunity for progress under new administration
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Fire at Poland plant will cut Goodyear sales by up to $40M
    2
    UAW strike prompts smaller suppliers to seek federal aid
    3
    Rubber News remembers Mike McNulty
    4
    Our View: Casualties not worth the risk in UAW-Detroit 3 fight
    5
    Freudenberg works to reduce CO2 footprint in facilities, compounding ingredients
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Tire
      • Airless Tires
      • Non-Tire
      • More News
        • Automotive
        • Executive Action
        • Government/Legal
        • Sustainability
        • Blogs
          • Products
          • Wacky World of Rubber
      • Suppliers
      • Silicone
      • Latex
      • Technical Notebooks
      • Opinion
      • Online Exclusive
      • Special Reports
        • Best Places to Work
        • War in Ukraine
        • Rubber Division IEC
        • ITEC
        • Women Breaking the Mold
    • PFAS
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • International Tire Exhibition & Conference (ITEC)
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • PFAS Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION