Moody’s outlook for global automakers is negative

Wednesday, 18 December 2019 13:47:41 (GMT+3)   |   Istanbul
       

Moody's Investors Service said in its annual outlook report that the outlook for global automotive manufacturers and parts suppliers for the coming 12 to 18 months is negative.

The key driver of the negative outlook is the continued decline in global light vehicle sales amid weakening economic growth in key markets, such as China and the advanced G-20 countries.

"We expect global light vehicle sales to contract for the second consecutive year, declining 0.9 percent in 2020 after falling a projected 3.8 percent in 2019," said Falk Frey, a Moody's Senior Vice President.

As a result, North American auto parts suppliers' median EBITA will fall about 10 percent in 2019 before rebounding one percent in 2020. European auto parts suppliers' aggregate revenue growth will continue to be weak with EBITA margins and free cash flow likely to decline in 2020.


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