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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.
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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.
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