Automotive Economic Indicators

Michigan Vehicle Production Down from Year Ago

Michigan vehicle production totaled 183,137 units in June 2023, increasing 3.2%  from June 2022. Michigan accounted for 19.9% of the U.S. total production this month. In June 2023, auto production decreased 33.5 percent year-over-year in Michigan and was down 0.1 percent nationally; truck production decreased 0.4 percent in Michigan but was up 3.9 percent nationally. Read the full report 

In July 2023, U.S. auto production decreased to 149,000 units—a slight decrease of 0.3% from the previous month.

Production dramatically decreased to 1,700 in April 2020 due to pandemic restrictions. Followed by the global microchip shortage coming out of the pandemic drastically reduced production, leading to low inventories on dealer lots and lower sales volumes, shortages are not yet finished but production has begun to rebound.

SAAR Q1 2023 performed better than initial forecasts. 

In July 2023, the seasonally adjusted annual rate (SAAR) increased to 15.7 million light vehicle units, which was a 0.5% increase compared to June 2023 and a 18.2%  increase from July 2022, according to the Bureau of Economic Analysis. During their Mid-Year Review, Cox Automotive, updated its full-year forecast to 15.0 million units, up from 13.9 million in 2022.

2023 Forecast 

Despite pressures on the economy and consumers, analysts expect U.S. sales to increase in 2023. According to the National Automobile Dealers Association (NADA), anticipates U.S. sales will rise to 14.6 million in 2023. Production will continue to struggle through supply shortages and consumers will continue to face high vehicle prices, higher interest rates, and low inventory levels.

Monthly U.S. vehicle sales volume decreased in July 2023, selling 1.3 million vehicles despite the monthly decline, vehicles sales increased 15.0%  this month compared to July 2022.  According to Cox Automotive, new-vehicle inventory levels significantly improved from last year, helping stimulate sales despite elevated prices and high auto loan rates.