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OEM outlook stuck on negative, suppliers stable

While OEMs struggle with slowing sales growth and growing R&D costs, suppliers are surfing the industry megatrends. By Megan Lampinen

As global vehicle sales growth slows and R&D investment demands escalate, vehicle manufacturers face a tough year ahead. Moody’s has confirmed its negative outlook for OEMs in 2018. The outlook has been negative since September 2016.

“We are expecting global light vehicle sales to grow just 1.5% in 2018, which contributes to our negative outlook,” explained Falk Frey, Senior Vice President and Auto Analyst at Moody’s. “While things could get worse, we are not anticipating a cyclical downturn in demand here in any of the key markets at the moment.”…

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