Carmakers say that consumer confidence is pretty fragile right now

Article by Christian A., on August 15, 2011

One week after the U.S. government debt has been downgraded by Standard & Poor's, credit remained both affordable and available for the vehicle industry. However, consumer confidence remains a major worry even if the vehicle manufacturers state that they will stay on-track in terms of sales and production for the rest of the year.

In an informal online survey conducted by Automotive News of vehicle dealers in the U.S., at least 70 percent of the 372 respondents stated that based on their floor traffic and sales, consumer confidence is low. One respondent shared that “the phones have stopped ringing.”

Another responded stated that several customers have said that they will be holding off on purchases due to the drop in stock market. Don Johnson, U.S. sales boss at General Motors, informed analysts last week that consumer confidence is currently “pretty fragile” and that it has been “ebbing and flowing throughout the year." However, he further stated that “there is continuing pent-up demand in the market."

On the other hand, Nicholas Stanutz, who is Huntington National Bank's senior executive vice president in charge of auto finance and dealer service, commented that consumers are “skittish,” stating that what’s likely to change is consumer confidence. He added that the stock market is “deteriorating, eroding wealth.”

Also, he stated that the economy is vulnerable and there is a "much higher probability of a double-dip now,” and as a result, car sales will drop. On another note, Subaru of America’s COO Tom Doll commented that the market dip "appears to be an overreaction to the downgrade." He added that as of this time, he does not believe that this is going to affect their sales or production plans.

Topics: united states

If you liked the article, share on:

Comments

Recommended

A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries