Coronavirus' latest victim could be Car Sales in the U.S. this year. How can a virus affect vehicle sales around the world? Jerry Reynolds the Car Pro says it has to do with China's factories not working at full potential. "You need parts to make a car. A LOT of parts come out of China. So that can disrupt the supply," says Reynolds. He says it's not panic time in the U.S. The He says auto industry in the U.S. is very resilient. "I don't see any disruption in the U.S. anytime soon. The auto industry can run for a good while before it's felt here. "
Business analysts at Moody’s are predicting vehicle sales to drop this year because of the spread of coronavirus. Reynolds says , "'We've got to get to that point where factories are running at 100% capacity. Now it's early enough in the year that it's early enough and we have time to make it up before the end of the year."
Reynolds says if Moody's is right - it could be good for car buyers later in the year. "If anything --- prices will go down. The reason is - if sales are low, the auto manufacturers will have to give incentives to get sales higher." You can hear Jerry Reynolds The Car Pro every Saturday on KTRH.