Daryl Kenningham, the President and CEO of Group 1 Automotive, recently joined ‘Squawk Box’ to discuss the state of the auto market. Kenningham provided valuable insights into current price trends for both new and used cars, as well as the evolving consumer demand for electric and hybrid vehicles.
Kenningham noted that the auto market has been impacted by supply chain issues, which have led to increased prices for both new and used cars. He also observed that consumer demand for electric and hybrid vehicles is on the rise, driven by concerns about fuel efficiency and environmental impact. Kenningham emphasized the importance of investing in electric vehicle infrastructure to support the growing demand for these vehicles.
In terms of the overall health of the auto market, Kenningham expressed cautious optimism. He believes that the market will remain strong in the long term, but he also acknowledged that there may be some short-term challenges due to the ongoing supply chain issues and the potential impact of rising interest rates on consumer spending.
Regarding pricing trends, Kenningham predicted that new car prices will remain elevated for the foreseeable future due to the supply chain constraints. However, he suggested that used car prices may start to stabilize as the supply of new vehicles improves.
Kenningham also discussed the importance of innovation in the auto industry. He believes that automakers need to continue to invest in new technologies, such as electric vehicles and autonomous driving, to meet the evolving needs of consumers and stay competitive in the global marketplace.
