Former Ford CEO Believes Auto Industry is Poised for Growth in 2021
Former Ford Motor CEO Mark Fields believes that the US auto industry could surge in 2021, according to CNBC.
Fields specifically stated that the US auto industry was "in a sweet spot" due to economic conditions being better than expected. “I think overall the industry is going to have a strong fourth quarter, and I do believe it’s going to be a strong 2021,” Fields said on “Closing Bell.” “The industry has been incredibly resilient, and it’s actually pretty healthy.”
Fields was the CEO at Ford from 2014 to 2017. Fields is now a senior advisor at private equity firm TPC Global. He believes the recovery in the auto industry has been attributed to “more wealthy consumers. And they fared OK during this pandemic.” Furthermore, COVID has thrown transportation into a completely new playing field. “Covid has changed consumers’ buying behaviors. They’re taking less mass transit.”
This has increased the demand for vehicles and the bottom line of auto companies. “I think the industry is in a sweet spot right now. The reason I say that is, retail levels are almost approaching last year’s levels at this time, and in addition, because of the low inventories, there’s much less incentives,” Fields said.
With regards to auto companies' fourth-quarter earnings, he said, “I think most of them will beat their profit forecasts, and I think that will fall over into 2021, particularly as more stimulus comes to the market.”