GM, Ford and Chrysler have said they will make an extra billion on sales in the US over the next four years, but the number of parts needed to make a car worth buying is going to grow much faster.
And that means the average American is going up on the list.
Here are the basics.
The GM-owned brands will make more vehicles and will sell more in the United States over the course of the next decade, as demand for new cars and parts increases.
Ford will see a 25 per cent increase in sales, Ford Focus will jump 25 per year, and Cadillac and Chevrolet will each add 20 per cent to sales.
GM will make around 5.5 million new vehicles and 4.5 billion in parts by 2020, while Ford will make a mere 4.2 million and Chrysler will make just over 1 million vehicles.
The number of cars and trucks being sold in the country has increased by just over 10 per cent in the past five years, according to a new report from IHS Automotive, and GM will see an average of 4.6 million new cars made every month from 2020 through 2025.
However, GM and Ford have been struggling to sell new cars as consumers seek more practical and practical choices.
IHS Automobile estimates the average price of a new car will go up by $3,000 by 2025, with the average cost of a used car falling by $1,000.
Ford’s and Chrysler’s cost of parts will fall by an average 26 per cent and 14 per cent respectively.
Meanwhile, the US is going backwards with its fuel economy, with gasoline prices falling by 4.8 per cent over the past year and a half, according the IHS report.
This means the amount of gas needed to go from a gas station to a petrol station will increase by 10 per, 20 per, and 28 per cent, respectively.
IHS also predicts the average gas price will rise by $0.20 per litre from 2020 to 2025.
But the impact of rising fuel prices on the average US household will be far less severe.
As a result, many Americans will not have enough money to buy a new vehicle.
A new report by the Government Accountability Office suggests that a household would have to spend $8,000 on a car or truck over the long-term to afford the basic car, truck, and SUV costs that a car typically retails for $26,400, or $2,000 per year.
That means many of the people who are purchasing cars and truck today won’t have enough savings to buy the car or even the basic vehicle if gas prices rise by 10 or more per cent by 2025.
In the US, there are around 60 million households without a car, according IHS, and more than 50 million people will not be able to afford a car for a long time.
If you’re worried about what your money is going towards, check out our Money Matters article to find out if your credit is on the line and what you need to do to ensure you’re saving for your car.
Read more: New car price report: Will the US become the cheapest place to buy new car?