These auto stocks are on the road to recovery

As the U.S. auto market works its way through a slump, the rest of the world is picking up the slack.

Vikram Barhat 4 October, 2017 | 5:00PM
Facebook Twitter LinkedIn

The U.S. automotive sector is going through a rough patch. Moody's predicts that auto sales will fall 3.6% this year. Worse, the weakness in the sector is forecasted to drag on for 18 months. In a stark contrast, though, car sales in Canada have been clocking record numbers almost every month this year.

For auto manufacturers, and investors, this divergence is a good sign. It means that the rest of the global auto market, especially in developing economies, is picking up the slack as the U.S. market works its way through the slump. In fact, a recent Morningstar report forecasts strong global growth in the auto industry. Similarly, a Scotiabank report says global car sales are indeed poised for an eighth consecutive annual record, powered by acceleration in emerging economies as well as resurgence in Latin America bouncing after a three-year decline.

Record global sales, says the Scotiabank report, reveal a clear disconnect between the reality and widespread fears and pessimism in the mainstream media.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Ford Motor Co16.31 USD1.67Rating
General Motors Co58.18 USD0.88Rating
Stellantis NV19.68 USD0.51Rating
Volkswagen AG ADR22.34 USD2.90Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy