Former Ford Motor CEO Mark Fields instructed CNBC on Tuesday that the U.S. auto business was “in a candy spot” heading into 2021, following a better-than-expected restoration from the coronavirus pandemic.

“I believe general the business goes to have a powerful fourth quarter, and I do imagine it may be a powerful 2021,” Fields mentioned on “Closing Bell.” “The business has been extremely resilient, and it is truly fairly wholesome” regardless of a resurgence in Covid-19 circumstances and elevated unemployment ranges, added Fields, who led Ford from 2014 to 2017.

Fields, now a senior advisor at personal fairness agency TPG Global, mentioned one cause the auto market has been capable of get better from a close to standstill within the early levels of the pandemic is that these looking for new autos would be the “extra rich customers. They usually fared OK throughout this pandemic.”

One other tailwind for auto gross sales has been a shifting desire in transportation because of the well being disaster, Fields mentioned. “Covid has modified customers’ shopping for behaviors. They’re taking much less mass transit.” His feedback are much like remarks from AutoNation CEO Mike Jackson, who instructed CNBC in October that stay-at-home orders through the pandemic modified the “American psyche in a long-term way.”

The strong demand for autos is also offering a lift to the underside line of auto firms, Fields defined, as a result of pandemic-related provide disruptions have limited the number of vehicles available. That’s serving to raise earnings.

“I believe the business is in a candy spot proper now. The explanation I say that’s, retail ranges are nearly approaching final 12 months’s ranges presently, and as well as, due to the low inventories, there’s a lot much less incentives,” Fields mentioned.

For traders looking forward to auto firms’ fourth-quarter experiences, he mentioned, “I believe most of them will beat their revenue forecasts, and I believe that can fall over into 2021, significantly as extra stimulus involves the market.”