Sunday, July 1, 2007

European automakers face rating challenge: Moody's

(Reuters) - "Moody's believes global demand for passenger cars and light vehicles should grow by 2-3 percent per annum in the long term," Falk Frey, a Moody's senior vice president, said in a report. "However, the challenges for European manufacturers to participate in this trend are immense."




The credit ratings agency said the main driver of the credit quality of European automakers in the short-to-medium term will be their dependency on Western European markets where demand is set to remain flat, leading to a continued battle for market share. French and Italian producers in particular are highly exposed to Western Europe, it said.


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