The 16-day federal government shutdown didn’t significantly hurt U.S. auto sales in October, according to analyst projections and industry executives.
In fact, year-over-year sales will likely rise by double-digit percentages when they are reported Friday, though some of that can be attributed to Hurricane Sandy, which dampened auto sales last October.
“The government shutdown didn’t impact consumers’ growing appetite for buying new vehicles,” said Alec Gutierrez, senior analyst for Kelley Blue Book, in an emailed statement. Gutierrez said demand for vehicles and the availability of cheap credit continued to be the driving force behind robust sales in October.
Edmunds.com estimates sales will rise 13 percent compared with last October. Kelley Blue Book says sales will climb 11.7 percent; JD Power & Associates and LMC Automotive projects a similar gain, when based on total volume and not accounting for selling days. This October has one more selling day then last October.
Total U.S. sales volume should equal 1.21 million to 1.23 million.
The government shutdown, which furloughed hundreds of thousands of workers for more than two weeks, had the potential to disrupt the auto sales momentum that has taken hold for most of the year. Automakers including Hyundai Motor Co. and Toyota Motor Corp. made adjustments to allow for deferred loan payments, and many estimated the shutdown’s impact on auto sales would be predicated on the time it took to resolve the Washington impasse. Some, including Hyundai America CEO John Krafcik, said the shutdown could curtail sales by as much as 10 percent.
But the seasonally adjusted sales rate for October should still hit about 15.5 million, according to multiple analyst projections and Bob Shanks, chief financial officer at Ford Motor Co.
Shanks said Thursday that there was “some potential reaction” to the shutdown this month. Shanks projected a sales rate in the mid-to-upper 15 million range, including medium- and heavy-duty trucks.
Toyota is expected to be the biggest gainer in October, with a sales boost close to 16 percent, according to Kelley Blue Book estimates. Toyota has has an all-new Corolla compact car that recently hit dealer lots.
Ford, Chrysler Group LLC, Honda Motor Co. and Nissan Motor Co. are expected to post double-digit percentage sales growth, KBB projects. General Motors Co. likely will experience an 8.3 percent sales uptick.
Source: The Detroit News
