Newton's Third Law of Motion, in the simplest terms, states that for every action there is an opposite and equal reaction. This applies to business on every level. Unlike the physical universe, the opposite and equal reactions in business are often not immediate or apparent.
Because of supply chain issues caused by a unforeseen world events, vehicle inventory levels have been at all-time lows for quite some time. This action created an opposite and equal reaction giving way to one of the best educational examples of the application of the laws of supply and demand the automotive industry has ever seen.
With supply being at a record low and demand being at a record high, profits have remained at near all-time highs for dealers, manufacturers and just about everyone else in the automotive industry. Despite the high cost of fuel, rising interest rates, sticker prices and overall inflation, record profits have been reported from several sectors of the industry.
These record profits are an action, and Newton's Third Law is ready to pounce.