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
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
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.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future