Honda seems to be having trouble this holiday season, and if the White House doesn’t act now, things may get worse by 2023.
The husband surprised his wife with an expensive modernist home on Christmas morning, which was accompanied by a flurry of snow and excitement. It was unlike any other present he had given previously, even though this scene is all too common in holiday auto advertisements! These omnipresent commercials, like Chevrolet’s “Red Tag Sales” and Lexus’ “December To Remember,” flood our TVs around this time every year, but today was truly something unique.
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A brand-new, highly-specced vehicle with a large red bow on the roof is parked in the driveway; oddly, the snow that was falling all around it did not cover the luxury SUV. The wife’s countenance suddenly changes to one of thanks and astonishment, as if to say, “Thanks, honey!” I’m so delighted you made a significant financial decision and passed it off as a Christmas present that I am utterly unable to return, even if I enjoy the car I now own.
We can all remember a period when Charlie Brown’s viewpoint on Christmas commercialism was more important than anything else. Today, however, it appears that the holiday has absorbed so much cultural influence, from Detroit to Japan and then Korea, that Lucy Van Pelt would probably assert that these countries have taken over this cherished season!
The fact that vehicle makers continue to run the same advertisement year after year demonstrates how successful this marketing strategy is despite its repetitive nature. It seems that it is intended to tap into something much deeper than the typical holiday spirit and is not simply for couples looking for a dependable and reasonable family vehicle.
The expanding market for enormous bows is proof that giving gifts has grown more important than ever! Now, with the help of these striking decorations, you can make any house appear as though it just emerged from a pricey holiday advertisement. Your present recipient will enjoy their surprise even more when they see that stunning big red bow on top, regardless of how you package it.
Industry analysts are not the only ones who believe that the economy will experience a significant decline in 2023; even gigantic bow people concur! Don’t only believe what Wall Street says; seek out perspectives from beyond the conventional financial advisory industry.
According to The Wall Street Journal, bow producers have not had a particularly happy holiday season due to reports of a large decline in sales. Many businesses are in severe difficulties without the holiday cheer that bows usually offer this time of year.
“As with many economic indicators of late, the data is mixed. But if weak bow sales are taken as a shiny red indicator, they may foreshadow a drop-off in the number of cars given as gifts this year,” the Journal reported.
“Orders are down 35 percent this holiday season at King Size Bows, which sells thousands of car bows each year to dealerships and individual consumers. That works out to hundreds fewer bows than normal, [said] Amber Hughes, the Costa Mesa, Calif., company’s owner.”
Due to a decline in sales, Tom Maoli, the owner of a Lexus dealership in New Jersey, has chosen to purchase fewer bows for automobiles this year. Even the legendary car manufacturer he represents appears to be susceptible to economic downturns, as evidenced by the popularity of adorning vehicles with holiday decorations.
Due to supply chain concerns, the auto sector constantly has an inventory problem, and new car sales are expected to plummet starting in 2021. Estimates indicate that sales of cars could drop by over 1.2 million this year, from 14.9 million to 13.7 million units, posing an unprecedented challenge to enterprises in the sector and beyond.
People are increasingly choosing to keep the automobile they are currently leasing, which suggests that potential customers may be hesitant to commit to a new vehicle purchase.
“It’d be hard to turn around and put a red bow on a vehicle you’ve already had for three years and try to pass it off as something new to someone,” said Tyson Jominy, the vice president of data and analytics at J.D. Power.
Although it may seem like a strange and expensive act of love, buying a car as a gift has surprisingly evolved into a tool that economists use to monitor the economy. This season’s abrupt decrease in the demand for ostentatious vehicle bows may, regrettably, portend economic hardship for several sectors of the economy.
“Real people — not just the ones who appear in commercials — do occasionally buy cars for loved ones as holiday gifts,” the Journal reported.
“Mr. Maoli figures that roughly 15 percent of holiday-season sales at his dealership are gifts, which is in line with estimates that Lexus says it has heard anecdotally from other dealers over the years. December was the strongest month for car sales from 2010 to 2020, according to an analysis from the research firm J.D. Power. During that period, 9.6 percent of sales occurred in December, and specifically among luxury brands, December accounted for 11.5 percent of sales.”
It is unlikely that the upcoming years will provide cause for joy. Unfortunately, 2023 doesn’t seem to provide much promise either; our vision for the future is complicated by more than just supply-chain problems.
The day before Christmas Eve, CNBC stated in a humbug-like story that “Economists have been predicting a recession for months now, and most anticipate it starting early next year.”
“Historically, when you have high inflation and the Fed is jacking up interest rates to quell inflation, that results in a downturn or recession,” Mark Zandi, chief economist at Moody’s Analytics, told CNBC.
“That invariably happens — the classic overheating scenario that leads to a recession. We’ve seen this story before. When inflation picks up and the Fed responds by pushing up interest rates, the economy ultimately caves under the weight of higher interest rates.”
We were led to believe that inflation was a temporary problem under President Joe Biden’s administration and that a recession was not imminent. This wasn’t the case, though, as prices started to increase and there was no end in sight. Furthermore, government officials denied there was any link between their extravagant spending and the increasing rates, despite the fact that logic dictates there must be!
We bid those happy Honda days farewell as the chill of winter sets in. Senator Chuck Schumer’s last-ditch attempt to secure a bailout through Congress’ $1.7 trillion relief measure failed, which is unfortunate for our cherished giant-bow producers. We watch this industry go through uncertain times with sorrowful hearts; they need all of our support at this trying period!
