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Biden Touts America’s Electric Automotive Future During Ford Tour, Test Drives Electric F-150 by Nick Niedzwiadek
President Joe Biden traveled to Michigan on Tuesday May 18th to drum up support for his plans to reorient the American economy toward a greener future, and to lavish
praise on Ford Motor Co. as it shows off an electric version of its signature pickup truck slated for next year. “We’re at a great inflection point in American history,” Biden said in Dearborn after touring Ford’s electric vehicle production facility. “How we handle the next four to 10 years is going to determine where we are going to be 30, 40, 50 years from now. It’s one of those moments in American history.” Biden’s visit was timed to Ford’s official rollout of its Lightning truck later this week, and the president was See Ford Tour, Page 24
Overall Rate of Uninsured Drivers Nationally Remains Flat by John Yoswick
Efforts to crack down on uninsured motorists in the U.S. appear to be having little effect, according to the most recent findings from the Insurance Research Council (IRC). In a report updated every three or four years, the IRC in April estimated one in eight drivers on the road in 2019―12.6%―lacked insurance. That’s down from 13% in 2015, but up from 12.3% in 2010. The figure potentially impacts collision repairers in that insured vehicles are more likely to be repaired
after an accident, and because atfault drivers who lack insurance increase insurance costs for those with policies. But state law regulates insurance, including enforcement of insurance requirements for drivers, and the rate of uninsured drivers varies widely by state, according to IRC data. Just 3.1% of New Jersey drivers lacked insurance in 2019―down significantly from 14.9% in 2015― but at the other end of the spectrum, nearly three in 10 drivers (29.4%) in See Uninsured Drivers, Page 19
39 YEARS
AUTOBODYNEWS.COM Vol. 39 / Issue 6 / June 2021
Two Responses to COVID for Collision Repairers— Resilience and Realization by David Roberts, Focus Advisors
In dozens of discussions with shop owners over the past four months, there is a marked divergence among MSOs about their plans for the future. Many who are experiencing a strong rebound in revenues have strong balance sheets and managed their expenses throughout the pandemic, and now have embarked on more aggressive expansion. Others are reconsidering their alternatives post-COVID, as their recovery proceeds more unevenly and more slow-
ly than anticipated. The former are carefully identifying expansion opportunities. One client is in the process of buying a dealer body shop. Another client has committed to building a large greenfield location in a rapidly expanding portion of his market. Among those who are reconsidering their future are some who have been planning their exit opportunities for a long time but have been reluctant to pull the trigger. Others are exhausted: “I just don’t have it in me to roll this rock up the mountain one See Two Responses to COVID, Page 14
Historic Recovery Ahead for U.S. Economy in 2021, Predicts UCF Economist by Josh Miranda, UCF Today
Fueled by a release of pent-up economic demand, unemployment will decline and Americans will spend more money through 2021, says Sean Snaith, renowned economist and director of UCF’s Institute for Economic Forecasting. While consumer spending shrank by 3.9% in 2020 amid the recession, the institute’s first-quarter U.S. forecast predicts spending will accelerate to an increase of 5.4% this year and slow to an increase of 2.6% by 2024. CARES Act funding and the COVID-19 vaccine are quelling fear of the pandemic, prompting consumers to open their wallets and businesses to hire new employees. Snaith maintains a positive outlook on the months ahead, but it could take until 2022 for unemployment to fall back to pre-pandemic levels. “Job growth will help ease the damage to the labor market from the lockdown, but the road to recovery will take at least another year,”
Snaith says. “Consumers are powering this recovery, and as the effects of the pandemic fade, consumer confidence will rise in tow.” In the report, Snaith predicts: Job growth will continue. The growth rate will reach 3.9% in 2021, before slowing to 3.1% in 2022, 0.8% in 2023 and 0.5% in 2024. Unemployment will decline to 4.2% by 2023. The housing market will continue to progress and improve through 2021—new-home construction will rise from 1.38 million in 2020 to 1.56 million in 2021, then decelerate to 1.24 million by 2024. Real Gross Domestic Product (GDP) growth will accelerate from its historic 2020 low to 5.4% in 2021, before easing to 4% in 2022, 2.5% in 2023 and 2.4% in 2024. With economic policy measures largely at a standstill in Washington, D.C., public health initiatives will likely drive the speed of the nation’s economic recovery. The looming See Historic Recovery, Page 18
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