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How The Government Shutdown Affects The Automotive Industry

As I am sure most of you know by now, our government shut down at midnight last night due to our elected officials not agreeing on how to fund the government. The last time this happened in 1995, the government was shut down for 21 days. If this government shutdown lasts as long as the one in 1995 we will start seeing larger effects into different parts of our lives. In this entry, I will go ahead and explain some of the ways the automotive industry might be affected.

The automotive industry depends on the federal government to provide many regulations that consumers use in purchasing decisions. Regulation is very important, the longer this shutdown drags on, the longer the industry will go without important regulations such as fuel economy certification, federal safety recalls, and crash tests. Experts also speculate that if this goes on for too long, the lack of these regulations or the backlog of these tests, could lead to consumer distrust, which might cause car sales to slow.

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Categories: Car News| Car Safety