The impact of the coronavirus is expected to hit the service and repair side of the business first.

The U.S. auto industry appears to be waiting for the other shoe to drop when it comes to the coronavirus as nothing’s really happened yet, but all sectors of the industry are keeping a watchful eye on things.

The number of reported cases in the U.S. continues to rise as do the number of large events getting cancelled; however, as far as any real damage to the U.S. automotive sector — nothing yet.

Stephanie Brinley, principal auto analyst at IHS Markit, noted that February sales weren’t affected by the virus, but the focus going forward is “going to be more on consumer attitudes than on supply” of cars or car parts.

(GM exercising caution as coronavirus epidemic spreads.)

Chinese parts factories were down for most of a month, and even though most are back up and running, analysts say they’re not running a full bore and don’t expect that to happen for some time.

The shutdown of parts plants in China due to the virus outbreak will impact repair shops.

Carla Bailo, CEO, Center for Automotive Research in Ann Arbor, Michigan, noted the numbers can be understated, as a lot of Chinese auto parts and components first go to Mexico which then uses them for goods that ultimately come to the U.S. However, she believes that the other shoe is going to drop.

“There will be an impact on (U.S. vehicle) production with a month, month-and-a-half, but sooner on the parts and service side,” she said.

Thus far, dealers and repair shops are cautiously optimistic.

(Automakers rein in and even ban travel as coronavirus epidemic spread.)

“Currently we have no shortage of parts, or vehicles for that matter,” said Max Muncey, senior manager, Corporate Communications, LaFontaine Automotive Group. “Obviously we’re monitoring it, but right now we haven’t been impacted at all with parts or inventory.”

Dealer inventory levels aren’t going to be impacted for some time by the coronavirus.

LaFontaine has 18 retail locations and 36 franchises across Michigan, plus seven parts warehouses including a 100,000 square-foot facility. The group is one of the largest parts wholesalers in the state of Michigan, supplying not only its own locations, but other dealers as well.

“We haven’t had any problems yet,” said Tiffany Sullivan, office manager, Rainbow Paint & Body, in Pooler, Georgia. “In fact, we haven’t heard anything about it so far, but you have to be concerned about it.”

Sullivan did make tie between the impact of the coronavirus and the GM strike. She noted the repair show, after not running into any issues during the strike, had to delay scheduled repairs after it was settled, pushing back repairs for weeks. She’s concerned something similar will happen with the coronavirus and parts availability.

(Global auto sales expected to fall 2.5% this year as coronavirus impact spreads.)

Michelle Krebs, senior analyst, KBB and AutoTrader, made the same connection, noting the impact of the problems in China would likely first be felt on the service and repair side. “If you look at the GM strike, that was the first place you saw a hit,” she said.