Will Congress kill off the big spring auto selling season?
Right now US vehicle manufacturers are surging production, particularly Ford at 11%, so as not to get caught withouit product as they did last year for their big spring selling season. However, this "Sequestration Terror" that our domestic terrorists known as Congress is cooking up might impact it in that the budget cuts that will go into effect will hit key industries hard that employ hundreds of thousands of middle class workers.
In December, Terry Lungren, went on national TV to blast Congress for the budget deficit business saying that Macy's could see the Holiday Season that started out so well being killed off as people reacted negatively to it all. Remember, large national retail stores have sophisticated computers and they have sales figures every 24 hours so they are one of the best baromters of economic activity.
Now we have the infamous Wal-Mart memo that sent the markets and metals tanking Friday. One of their top executives called this year's sales there a "total disaster" blaming the payroll tax hikes, employment cutbacks, rising gas prices, and of course these upcoming massive government spending cutbacks.
If this continues we could see the spring auto sales season impacted. But my take, as long as gas is high and interest rates low, people that have cars that are over 10 years old (millions and millions) will replace them because of gas and repair cost savings.