How Things Shifted For Automakers Since the Last Detroit Auto Show
Underway This Week
The North American International Auto Show, more commonly known as the Detroit auto show, is back. This year, it’s being held in the relatively balmy September weather, after taking place during frigid January temperatures for decades.
The COVID-19 pandemic led to a three-year hiatus, and the show’s return comes amid a series of changes. For one thing, the show is smaller, with fewer automakers participating. Fifteen automotive brands have displays this year, down from 24 in 2019. Back in 2012, 35 had displays.
Industry executives say the auto show has become less important as the internet has become more prominent. Generally speaking, the focus is on virtual marketing and events. Many dealers say new car buyers typically complete their entire purchase process online — forgoing even a test drive.
In addition, there are ongoing supply chain disruptions for automobiles, which impacts how companies feel about events like the Detroit auto show. If dealers’ lots are low on inventory, there’s less incentive to create buzz about vehicles or brands. Both the supply chain issues and the tendency toward virtual events were clearly impacted by the COVID-19 pandemic as a whole.
Auto Show Offerings
As the auto show takes on its new identity, the focus has shifted from onstage reveals and fancy exhibits, to test drives and demonstrations. One such curiosity is eVTOLs, also known as air taxis. They take off and land vertically like helicopters and could be used for future trips to and from the airport, whisking passengers high above traffic.
Among the brands participating are Stellantis NV (STLA), Ford (F), and GM (GM). Honda (HMC) declined to participate, stating this year’s shortage of available cars and trucks was a factor. Certainly for people in the auto sector and car lovers alike, the Detroit auto show will continue to serve a purpose — if for no other reason than to celebrate the industry as a whole, in Motor City.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.