Mexican Media Brands
Carmakers Cautious About Effect of Washington’s Fiscal Gridlock
Carmakers report mixed readings about the impact on sales of the federal government's shutdown and possible debt default, The New York Times notes.
#economics
Share
Carmakers report mixed readings about the impact on sales of the federal government's shutdown and possible debt default, The New York Times notes.
Hyundai predicted on Monday that U.S. car sales could drop as much as 10% this month, blaming consumer uncertainty caused by Washington's fiscal paralysis. General Motors agrees that "growing anxiety" among would-be buyers threatens the auto industry's spectacular sales pace.
Analysts expect car sales in the U.S. will reach about 15.6 million this year, up nearly 8% from 2012. Demand slipped 4% year on year in September, marking the first such decline since the beginning of 2011. But observers attribute the shrinkage to a quirk in the sales calendar.
Several other carmakers aren't yet concerned about Washington's wrangling. Ford and Chrysler tell the Times they don't yet detect any change in the country's overall sales activity.
Still, the Times notes that four carmakers Ford, Hyundai, Nissan and Toyota are offering payment deferments for as many as four months to government employees idled by the federal shutdown.
RELATED CONTENT
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.