Hyundai Motor America CEO John Krafcik said the prolonged U.S. government shutdown (which ended on Thursday) might hurt October new-vehicle sales by as much as 10 percent. The executive said the shutdown damages consumer confidence and generates anxiety for many people.
“It’s that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile,” Krafcik said in an interview with Bloomberg Television. “We’ll probably see the industry off five to 10 percent this month, compared to where it was in September. I think a lot of it has to do with this shutdown discussion,” the exec added.
At the beginning of this month, Hyundai and Nissan announced a program to allow federal workers affected by the shutdown to defer loan and lease payments. “We have already had requests from over a thousand people to have their payments deferred,” Krafcik said. “That’s a much stronger uptake than we thought. It makes us happy. It means we’re making a difference, but it does give an indication of just how deep and serious the issues are,” he added.
U.S. auto sales in the first eight months of this year have been on the rise, but in September deliveries fell 4.2 percent, the first decrease in more than two years. Automakers including GM and Ford said early this month that the shutdown was a threat to the already slow economic recovery.
By Dan Mihalascu
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