Do you buy that autos have hit bottom?
By IndusPlacer on May 3, 2009 in Manufacturers
As amazing as it may seem, with the simple declaration, “…auto sales have hit bottom”, Goldman Sachs auto analyst Patrick Archambault has upgraded the U.S. Auto sector from Neutral to Cautious.
He additionally upgraded Ford from Neutral to Conviction Buy. Bare in mind the analysts are referring to stocks in the sector and company, respectively. The real question is are you feeling that the automotive industry in the United States has sunk as low as it might go?
Big name companies Chrysler and General Motors are seriously contemplating bankruptcy restructuring, and the Federal Government is requiring auto manufacturers to slim down and lean up operations. The average consumer may find the bottom is a bit deeper.
On the strength of thousands of dealerships likely to close in America over the next year and prospects of foreign oil prices to increase, can an entire industries forecast be laid upon the declarations of a single analyst? Likely not, however, there are other contributing factors that are used to support these predictions.
Two of the bigger contributing factors deal with the fact that Ford Motor Company has taken no bail out money, and Chrysler is looking good in its partnership with Fiat. At the end of the day, however, it is going to be time, continued good business practices and better products and services from the auto industry that will tell the tale.