Auto dealers in the northeastern area of the United States are assessing the damage caused by Hurricane Sandy, which hit the coast on Monday.
They are not only expecting physical damage from the storm, but also lower sales. This is why dealers are trying to minimize the effect Sandy will have on October sales figures which had been on the rise. Sandy’s timing is really unfortunate for the U.S. auto industry. According to a report by Automotive News, October industry sales figures had been forecast to reach a seasonally adjusted rate (SAR) of 14.8 million, which was just behind September’s SAR of 14.9 million.
Dealers across the entire northeastern U.S. will be hurt by Hurricane Sandy. Storm damage could extend Sandy’s impact for months, but that depends on the amount of damage inflicted to dealerships and vehicle inventory. Not to mention widespread power failures, which will disrupt business operations and keep showrooms empty.
The Atlantic hurricane season lasts from June to November, with peak season ranging from mid-August to late October. According to the Weather Central website, Sandy is not a typical tropical storm that gets its power from warm ocean waters. Sandy is considered an “extratropical” system driven by temperature contrasts in the atmosphere.