Ford, Rivian, GM: Concern About Outlook for Carmakers Piles Up

Life for the car manufacturers is becoming tougher as the economic slowdown worsens. A perfect storm of prepandemic difficulties made worse by covid-19 appears to be forming. 

Demand for cars is likely to sharply slow as consumers delay buying a new vehicles. At the same time, producing the vehicles is expected to rise further as supply-chains remain disrupted. The parts shortage remains a huge headache.

These issues and others have prompted Moody’s to lower its forecasts for the automotive sector. The credit-rating provider now estimates that 2022 light-vehicle sales globally should dip 0.7% from 2021. This will bring sales to about 85.5 million units, 10% below the prepandemic level of 95 million units.

Source: https://www.thestreet.com/technology/ford-rivian-gm-concerns-pile-up-on-carmakers?puc=yahoo&cm_ven=YAHOO&yptr=yahoo