Automakers nervously watch events in Washington


Automobile executives press politicians to reopen the government as they ponder the impact of the stalemate on U.S. consumers,

Ford (F) spokesperson Erich Merkle says the automaker hasn't seen a sales slowdown in the U.S. attributable to the government shutdown yet, while Chrysler (FIATY.PK) acknowledges only a minimal impact.

Yesterday, Hyundai's (HYMLF.PK) CEO created a stir when he predicted U.S. auto sales could drop by as much as 10% due to the squabbling in Washington DC.

Most automobile analysts think if the budget impasses stretches into next week that demand will be clipped noticably.

Related stocks: GM, VLKAY.PK, HMC, TM, NSANY.OB

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Comments (4)
  • User 353732
    , contributor
    Comments (5160) | Send Message
     
    1. The government is not closed. 85% of activities have been deemed" essential" and are ongoing. The huge majority of federal employees are "working" while the rest are on paid holiday

     

    2. The lives of ordinary people are not affected and are perhaps even better for millions who are not subject to persecution by petty bureaucrats.

     

    3. There will be no impact on auto sales
    16 Oct 2013, 07:08 AM Reply Like
  • Calabres
    , contributor
    Comments (28) | Send Message
     
    wonderful news User353732!
    16 Oct 2013, 11:22 AM Reply Like
  • newkid0610
    , contributor
    Comment (1) | Send Message
     
    My mother, who works for the government, has been furloughed without pay along with 800,000 other employees (expected to increase). Of the almost 14,000 employees in the Department of Energy, more than 8,000 have been furloughed.

     

    My father works for the solar industry which, although it has made recent gains, is still largely dependent on the operation of the government and its "petty bureaucrats"; he is unable to do business. Billions of dollars are lost each day, both in the amount the government does not spend and in economic loss.

     

    And as an ordinary college student who is still largely dependent on his parents to be able to continue his education, the shutdown has affected not only my close family, but me personally.
    16 Oct 2013, 12:02 PM Reply Like
  • genedittmer
    , contributor
    Comments (2) | Send Message
     
    Wow. User 353732 seems to have on rose-colored glasses. Wish it were true! What about Social Security checks, pensions checks, disability checks, etc? That will all stop, plus much more I can't think of right now. That won't affect the economy? Federal assistance to schools and hospitals? Federal help to states? (That will trickle way down.) Depending on how long this goes on, it will start affecting everybody.

     

    Also, if we default, it will cost the Treasury billions due to our lowered rating and ability to borrow money cheaply. Then they will have to raise the debt ceiling even more to pay our bills. Their money comes from taxes, so it costs us.

     

    The egos at the top are playing a VERY foolish game. The inmates are running the asylum.
    16 Oct 2013, 09:16 AM Reply Like
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