U.S. Auto Production Remains Steady, for Now at Least

Will the global coronavirus outbreak hurt U.S. auto production and cut into new-car shopper traffic in showrooms? Officials with Detroit automakers General Motors, Ford Motor Co. and Fiat Chrysler Automobiles on Wednesday told Reuters there has been no disruption to U.S. production.

Yet.

Automakers and suppliers say they have so far avoided any U.S. shutdowns thanks to parts already being en route to plants and to suppliers using air shipments or shifting supplies to different plants.

Last week GM boss Mary Barra said its production was secure from parts shortages “quite far into this month.” Reuters says suppliers and industry consultants echoed there should be no issues for a few more weeks.

Not having production issues doesn’t necessarily mean steady sales, however, and indeed analysts are reducing their 2020 sales forecasts. Morgan Stanley analyst Adam Jonas told Reuters he expects U.S. sales to be down 9 percent this year, after previously expecting about a 1-2 percent decline before the outbreak.

For the most part dealers say they’re experiencing strong showroom traffic so far this month, though that outlook is a bit inconsistent in places where coronavirus has hit hardest. In Seattle, for example, sales are down around 20 percent, but in another affected area, New York, sales haven’t yet been hurt.

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