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The prolonged U.S. government shutdown is damaging consumer confidence and may trim October new-vehicle sales by as much as 10 percent, said John Krafcik, CEO of Hyundai Motor Co.’s U.S. sales unit.
The standoff in Washington that began Oct. 1, leaving some government agencies closed and federal workers furloughed, is generating “anxiety” for many people, Krafcik said in an interview with Sara Eisen, an anchor of Bloomberg Surveillance. “It’s that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile,” he said.
“We’ll probably see the industry off five to 10 percent this month, compared to where it was in September. I think a lot of it has to do with this shutdown discussion.” Auto sales have been a consistent bright spot for the U.S. economy this year.