Add the auto industry to the slew of industries expected to be hit hard by the coronavirus pandemic.
As reported by trade publication Automotive News, the Center for Automotive Research in Ann Arbor, Michigan, said a significant drop in demand is likely and the impact to the U.S. economy will be large.
According to the group’s research, every seven-day period where customers stop buying new cars could cost the U.S. economy 94,400 jobs, $7.3 billion in earnings and $2 billion in government tax receipts.
Industry forecasters including Morgan Stanley, LMC Automotive and ALG already are cutting 2020 sales forecasts from anywhere from 3% for a short slowdown to 14% for a prolonged decline.
The short-term hit to new vehicles sales in China due to the coronavirus was massive – down 79% in February, according to the Wall Street Journal. The impact in South Korea, however, wasn’t as severe, down just 11%.
Locally, Ricart Automotive President Rick Ricart said, “it’s truly a day-to-day situation.”
“We’re going to see a slowdown, but hopefully sales won’t fall off a cliff,” Ricart said.
In the case of his dealerships, the company is two years into its Express Checkout program, which lets buyers do most of the paperwork online prior to picking up the vehicle at the dealership.
Its employees also will pickup and return vehicles that need to be serviced. Ricart is waiving the $20 fee that typically would apply to that service.
Font: Columbus Business First
