Lower Financial Results will Make Automotive Industry Vulnerable

The automotive sector is standing strong towards lower financial results. This intends to surprise shareholders and stimulate the postponed. The European Union rules are coming in 2020. These forces will push its citizens into electric cars.

Investors are looking strong in the second quarter of the financial result. The analysts are cutting off their forecast of global sales revenue led by the US and China.

Fitch Solutions is freezing its global forecast to 0.1% in 2019. In 2018, the forecasting growth was around 1.3%. This includes the assumption of U.S. sales showcasing 2.0%. However, China is about to present a tremendous fall of 5.7%. Its initial prediction was minus 1.5%.

Stefan Bratzel, Director of CAM in Germany is predicting a 5% fall in global sales. Including, lower stock market valuations and cost-cutting. Also including mergers and austerity programs. He also states that the industry is working with double profits. The huge investment structure will fund future electric vehicles.

Erik Jonnaert, ACEA Secretary-General believes it is due to Brexit and changing macroeconomic conditions. The automotive market is witnessing a natural stabilization.

Bratzel, Director CAM estimates a war between the upstart digital operators and traditional players. He reserves a statement about the advancement of the automotive sector. It is developing into a battle of the world. More specifically between the automobile manufacturers, key digital vendors and new mobility service providers. Thus, there is an increasing demand for multiple collaborations between digital players and manufacturers.

Bratzel notifies the number in the first quarter of 2019. the trend of income sharing interest and profit margin. The biggest automakers dropped down to 3.4% from 5.3% in 2018. Adding on, he also talks about the Daimler, GM, Toyota, and Volkswagen. Moreover, they are attaining the returns under cost-cutting programs. Honda, BMW, and Nissan are still sailing below 3%. It estimates profits to level up at a lower one in the near future.

Michele Shepard

Michele heads the automotive news column as a author. She is hard working and ensures timely delivery of tasks. She in-depth analysis helps us deliver content with great accuracy. She pays keen attention to every small detail. Moreover, she makes sure that the content remains in compliance with set industry standards. Michele is a great performer and her contributions greatly appreciated by the company.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *