Around the Net

Auto Industry Prepares For Possible Default

If the government defaults on its debt, we can bid the economic recovery, such as it is, goodbye. What would it do to the auto industry? It would hurt everything from sales to suppliers.

Though auto executives and analysts predict the deadlock will be resolved, if it isn't, "the psychological impact will be huge," said David Cosper, CFO of Sonic Automotive Inc., the nation's third-largest dealership group.

Interest rates would take off, killing lending, and consumer confidence would fizzle, and the dollar would weaken. "Our industry would stop as we would be in shock as a country," Cosper said in an email.

Read the whole story at Automotive News »

Next story loading loading..