DETROIT: Automakers and suppliers across the globe have been scrambling to keep production going after the coronavirus shuttered parts plants across China. Now a bigger fear is emerging: consumers may be in no mood to buy cars and trucks.
"That was a first blush at things as we model what we’ve been seeing” in key global markets, said Jeff Schuster, senior vice president of forecasting at LMC."It could clearly get much worse than that.” "The real fear and concern is if we end up with a demand crunch in the US,” said Kristin Dziczek, vice president of the labour and economics group at the Center for Automotive Research."Are people going to be buying, or be nervous because their 401 will just have taken a huge hit?”Among the few automotive stocks that rose Monday in New York were O’Reilly Automotive Inc. and AutoZone Inc.
Automakers are racing to keep production lines running as virus fears threaten to crimp supplies of key parts. But if car buyers steer clear of showrooms — either out of fear of being infected or concern about their personal finances — that could have a more lasting negative impact.