Downward Revision In Auto Industry Sales

Sales in the auto industry could be slower than was earlier anticipated. Credit Suisse on Tuesday reduced its projection for US light vehicle sales for the year to 11.4 million cars and trucks, from its earlier forecast of 12 million. The brokerage firm said that the downward revision was on account of the slower recovery in the labor market and the continued decline in home prices. The consensus target of Wall Street analysts for sales in the auto industry is 11.7 million vehicles for 2010. Credit Suisse also made a downward revision to its outlook for 2011 and 2012 from 13.5 million to 12.8 million vehicles and from 14.5 million to 13.8 million vehicles, respectively. Analyst Chris Ceraso said that investors should give preference to "defensive names" in the auto parts sector, citing like Johnson Controls

and BorgWarner

as examples. Read more