Auto industry slowdown could result in recession

September 17, 2019 - 5:36 am

KANSAS CITY, Mo. -- The slowing auto industry could be what leads to the next recession. Several factors are pointing to the possibility of a recession, including the GM strikes, attacks in the Middle East, and possibly aggressive trade policies.  

Charlie Chesborough, Senior Economist with Cox Automotive told KMBZ we may see credit start to tighten, and that's bad news for the majority of car buyers. 

"IF we see that there is a tightening there, the vehicle market retracts as a result of that, because people just can't get approved for car loans," Chesborough said.

According to Chesborough, those same factors slowing the automotive industry will also slow the broader economy. 

"Your expensive manufactured goods like washing machines, dish washers, appliances, those types of things . . . as well as automobiles [will be affected]," Chesborough said. 

Chesborough added the cities where vehicles are made would feel the impact first.

He said everything right now shows a strong vehicle market, but signs of strong headwinds continue to threaten the auto industry as we look to the near future. 

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