Auto Stock Roundup: Harley Beats Estimates, Honda Recalls, General Motors Ties Up With Uber
Zacks Investment Research | Jul 19, 2017 10:20PM ET
The auto sector is currently facing a lot of challenges. The problem of high-levels of inventory is putting pressure on auto stocks.
In fact, General Motors Company (NYSE:GM) has lowered the outlook for new vehicle sales in the U.S. in 2017. This is an indication of the industry heading for a moderate downturn in 2017. A glut in nearly-new used vehicles is expected to undermine sales this year.
Added to this, the U.S. government’s plans of exiting North American Free Trade Agreement (NAFTA) and introducing a border-tax system have worsened prospects of auto stocks. This would increase the cost of U.S. cars and threaten jobs of thousands of suppliers.
Recap of the Week’s Most Important Stories
1. Honda Motor Co., Ltd. (NYSE:HMC) has decided to recall 1.2 million Accord midsize cars, according to a Bloomberg report. A problem in the battery sensor, which can lead to an electric short and even a fire, has prompted the Japanese automaker to take such a decision.
Four cases of engine compartment fires resulting from battery sensor-related problem have been reported to Honda. All the cases have been reported from states where salt is used to clear roads during winter (read more: Original post
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