How Will Interest Rate Hikes Effect Auto Industry?

(RICHMOND HILL, ON) – In the past few months, the Bank of Canada has increased the bank rate by a quarter point two times. Given the automotive sector’s sensitivity towards changes in interest rates, it is worth examining the implications of these higher interest rates.

If the market is going to dampen, the questions of how much, when, and if this is bad for the industry are extremely relevant to the outlook of the industry, from both short term and long term perspectives.

In this month’s observations we explore these interest rate hikes by looking at the climate around the economy, perspectives from both OEMs and consumers, factors not tied to interest rate vulnerability, and the directions the market may take.

More information can be found in the DesRosiers Automotive Reports published by DesRosiers Automotive Consultants. For more information on these reports please call (905)-881-0400 x26 or email.

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About the Author

Dennis DesRosiers
Dennis DesRosiers
Since the founding of his independent consulting practice in 1985, Dennis DesRosiers has become Canada’s leading automotive industry analyst and one of the foremost theorists in the North American automotive industry. Email Dennis DesRosiers
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