More and More People Are Falling Behind On Their Car Loans

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More and More People Are Falling Behind On Their Car Loans

John Lawler, CFO of Ford, says delinquencies are "maybe a leading indicator."

By Steve DaSilva
Today 10:30AM

People are falling behind on their car loans, Toyota is idling production lines, and Audi is suing NIO over copyright infringement. All that and more in The Morning Shift for June 16, 2022.

1st Gear: Surely This Bodes Well For The Economy At Large

Ford’s CFO, John Lawler, said on Wednesday costs to make the Mustang Mach-E were going up, and also that loan delinquencies are creeping upwards thanks to “economic pressures.” With interest rates from the Fed on the rise, and the hashtag #StockMarketCrash continually trending on Twitter, those delinquencies could be yet another sign of economic turmoil to come. From Automotive News:

Ford Motor Co. CFO John Lawler on Wednesday said auto loan delinquencies are beginning to rise in what he called a “dynamic” economic environment.

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“We’re looking for every data point we can to get a read on where the consumer is and where they’re headed, given the inflationary issues, economic pressures,” Lawler said at the Deutsche Bank Global Auto Industry Conference. “We are seeing some headwinds when it comes to delinquencies as maybe a leading indicator.”

Still, he said the uptick was not yet a concern because delinquency rates have been at historic lows for about the past year.

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2nd Gear: Toyota Is Idling More Production In Japan

Toyota has been on a production-cutting tear as of late, and it seems there’s no end in sight. The company is suspending yet another production line in Japan for the next few weeks. From Reuters:



Toyota Motor Corp (7203.T) said on Thursday it plans an additional domestic factory line production suspension in June and July due to semiconductor shortages and a COVID-19 outbreak at one of its suppliers.

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