Hurricane Sandy ravaged much of the U.S. East coast this week, as the so-called “Frankenstorm” powered her way over the Appalachian Mountains, carrying rain and winds as far as the Midwest. Not surprisingly the automotive industry has been impacted by her rampage.
Luxury makes in particular are expected to be disproportionately affected by the storm. Brands like Mercedes-Benz, BMW and Acura get a large portion of their sales from customers living in eastern cities. This region can account for as much as 25 percent of their volume.
As always the auto industry was hoping for a strong finish this month but October sales could be down a tad from what the experts and OEMs had predicted.
There are more than 4,750 dealerships located in states pummeled by Hurricane Sandy. Some of those stores may have lost as many as three selling days this month due to the storm. Even in areas not devastated by flooding and gale-force winds, customers likely stayed home, something that will have an additional impact on new vehicle sales figures.
[Source: Bloomberg Businessweek]