US: Storm brewing in the auto sector – ANZ

Analysts at ANZ point out that the struggles of the US retail sector are well known, as store closures accelerate to record levels and employment falls while customers increasingly shop online but, a storm is brewing in the auto sector as well.

Key Quotes

“Expansion of auto manufacturing in the US has long been an aim of US President Trump, but after years of record manufacturing and sales there are some worrying signs emerging: flattening sales, high inventories, and falling used car prices that will undermine both the key new-car lease market and the value of trade-ins. Sub-prime auto loans have skyrocketed in recent years but interest rates are now on the way up. Ford traded out its CEO yesterday partly in response to a weaker share price. Watch this space.”