Hurricane Sandy, which hit the US a few days ago, not only caused damage to buildings but also to cars and every other things that came in its way. The cars that were parked outside in the open were left badly affected, with a large number of them not even in a condition to be used again. It is, therefore, believed that the sale of cars in the United States may increase once the life in the country gets back to normal.
A recent report by Edmunds.com, a popular car-shopping website, suggests that the automotive industry could witness a boost from customers who had either delayed their purchases or in need of replacing their vehicles. Edmund also pointed out that the expected rise in demand will increase the sales volume in the Mid-Atlantic, which together accounts for around 20 per cent of the total new car sales in the country.
Edmunds Chief Economist Lacey Plache, talking about the matter said that Hurricane Katrina, which hit in 2005 had caused a damage to more than half a million vehicle despite affecting much less populated area than that in New York and New Jersey hit by hurricane Sandy.
Plache said, “Sandy’s impact may well be higher, but even if 100,000 damaged vehicles are replaced by the end of the year it could boost auto sales three to four per cent for the quarter, and that has a positive effect on the economy overall.”
Auto Sales in October, in the US, continued to follow an upward trend, despite being badly hit by the Hurricane Sandy; thus, increasing the possibility of the auto industry to increase the sales figure by more than 2 million vehicles in 2012 over 2011.
The Auto industry has even come forward and contributed in the relief and recovery efforts. Woodcliff Lake, New Jersey based, BMW, despite being badly affected by the Hurricane has contributed $1 million to the American Red Cross for the relief operations. On the other hand Ford has contributed $50,000, while General Motors has given 50 Chevrolet trucks and Vans in the relief efforts apart from its GM foundation contributing $2,50,000 to the Red Cross Disaster Responder Program.
