Auto Stock Roundup: Broader Economy To Boost Demand, GM Scales Up EV Production, F Recalls
Zacks Investment Research | Mar 16, 2018 08:04AM ET
The auto industry has been plagued with several problems of late. Lower vehicle sales recorded by many automakers can be attributed to soft demand for vehicles by consumers following a lengthy boom phase. In fact, majority of the automakers witnessed decline in sales in February. Automakers’ new stance of offering lower discounts to buyers, stringent credit conditions and a rise in interest rate kept a lid on consumer demand and eventually resulted in a decline in new vehicles sales.
However, the new-found strength in the broader economy, better job results have again provided some edge to the auto companies. Leading rating agency, Moody’s, projects U.S. auto sales to decline less in 2018 than the previous forecast. Automakers are now projected to sell 16.9 million light vehicles in the United States in 2018, up from Moody’s previous forecast of 16.8 million. Overall improvement in the economy partly led to this upward revision.
Besides these possible upsides for the auto companies emanating from the broader economy, there was the usual readiness from the auto companies in the electric vehicles front. Earnings announcements also continued in the past week.
(Read the previous roundup here: Zacks Investment Research
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