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Fiat Chrysler has a May 4 restart date, with Ford and General Motors expected around the same time. All are negotiating with the United Auto Workers union.
Sure they can start up, but I don't think people are going to be in a rush to buy new cars right away.
If one looks at the graph of the pandemic of 1918. That one came in 3 waves. The 2nd being the worst.
And if one looks at past recessions. People lose too much money in their investments. And don't spend money taken from their depleted savings. Much depends on the stock market.
Then the employment and unemployment. Too many are getting behind on rent and mortgages. Gotta go back to work.
In history, this country did have the "Roaring 20's" - so who knows what will happen.
This pandemic is world wide. It's anyone's guess as to what will happen to the economy. But at this time - it doesn't look good.
I think there's definitely a number of people who aren't thinking at all about buying a car, and there's nothing wrong with that. But then again, there are people who do still want to buy a car and can't because the model/packages/options, whatever aren't available on a lot right now.
The plants are going to have to start back up, it's just a matter of when. We're still planning on replacing both of our cars this year, one of which will have to be a factory order. I will 100% buy earlier vs. later if the right deals come along.
Keep in mind the economy is affecting families in different ways. I do not think there is any question the auto industry is heading for a big contraction in terms of sales in the short term with as many people who are out of work at the moment.
On the flip side, there are some sectors where people have not been hurt nearly as bad. A lot of folks have been able to work from home, retain their jobs and income, etc. For those people who may feel more secure in their employment and were considering a purchase, they may continue to do so. Deals on new cars may become very attractive as automakers try to just push tin out the door to generate some cash flow and pay bills.
In the long run, nobody knows yet how any of this ultimately plays out. Automakers still need cash flow to remain viable. They will build cars and try to sell them.
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