Coronavirus strikes more fears over U.S. auto sales, production remains stable
Despite top U.S. automakers executives assuring an undisrupted factory production, fears of a slowdown in sales growth of the car industry in the United States is a recurring theme among forecasts of economic analysts.
The big three automakers in the U.S., General Motors Co, Ford Motor Co, and Fiat Automobiles NV reported a continuous, undisrupted production in their factories in the U.S. as affirmed by their respective top officials.
In spite of the virus outbreak, these firms avoided operation shutdowns as their parts are already on their way, with their suppliers shifting to air shipments, according to some industry consultants.
GM and Ford shares, however, decreased by 4.1% and 5.5% respectively, compounding disappointments on Wednesday trading with the S&P 500 Index dropping by almost 5%.
Analysts lowered their sales growth forecast in the U.S. for 2020 in light of the virus outbreak. Adam Jonas, a Morgan Stanley analyst said he expects the U.S. auto sales to suffer a 9% dip this year, anticipating large purchases delay among consumers. Before the COVID-19 outbreak, he had forecast a 1-2% sales decrease.