And if that doesn’t do it, European Union rules coming into force next year might be the catalyst as regulations to force its citizens into electric cars they don’t want will induce a tsunami of red ink on to all but the strongest bottom lines.
Fitch Solutions has switched its global forecast to a slight 0.1% decline in 2019 after previously forecasting growth of 1.3%. This includes a prediction that U.S. sales will slip 2.0% but China is taking the biggest hit with a fall of 5.7% after a previous prediction of minus 1.5%. “While Daimler, Toyota, GM and Volkswagen still achieve returns of between 7.1 and 6.4% thanks to cost cutting programs, BMW, Honda and Nissan are already below 3%. It is expected that profits will level off at a lower level over the next few years,” CAM said in recent report.
As for the prospects for mergers, consolidation and take-overs, investors expect Renault and Fiat Chrysler Automobiles to revive their stalled merger talks, while PSA Group, thwarted in its rumored desire for its compatriot Renault by FCA, is said to be looking at ailing Jaguar Land Rover. Meanwhile, as financial reports appear later this month, expect profit warnings to be a recurring theme.
You gotta be kidding. Cheap line at the moment Forbes don't you think?🤔 Wonder if it has anything to do with financing 🙃
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