Although Democrats and Republicans stopped their debate over the budget deficit, which prompted the Federal government shutdown, according to the chairman of the National Auto Dealers Association new car sales could still fall this month.

David Westcott, NADA’s current chairman, said he wasn’t ready to throw away John Krafcik’s prediction, with the president of Hyundai Motor America forecasting sales dipping by as much as 10%. General Motors and Ford have also voiced concern about the potential impact of the shutdown.

Westcott was in Detroit to discuss with members of the Automotive Press Association, talking not only about the impact of Washington’s political crisis but also about the growing problems faced by the nation’s century-old dealer franchise system.

Like many retailers, there is growing concern that last year’s boom could vain off. Westcott says “the economy is very fragile.” But he added he doubted the government shutdown, which started October 1 and had idled more than a 1 million government workers and contractors for 16 days will  truly have any long-term effects. “This will pass,” Westcott said.

US auto dealers, overall , now have very high customer satisfaction figures and make a clear benefit to buyers, added Westcott, who operates and owns a Buick GMC dealership in Burlington, North Carolina.

Via The Detroit Bureau


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