Morgan Stanley Slashes U.S. Auto Sales View Over Virus ‘Shock’
Morgan Stanley Slashes U.S. Auto Sales View Over Virus ‘Shock’
(Bloomberg) -- Morgan Stanley’s auto analyst sliced his estimate for U.S. sales this year, predicting a “demand shock” from consumers delaying big-ticket purchases because of the coronavirus.
Industrywide deliveries may drop about 9% to 15.5 million vehicles this year, analyst Adam Jonas wrote in a report Wednesday. In addition to cutting his sales projection from 16.5 million, he trimmed earnings estimates for General Motors Co., Ford Motor Co., Fiat Chrysler Automobiles NV and five auto-dealer groups.
“Lower consumer sentiment will mean consumers may put off the purchase of expensive consumer discretionary purchases such as a ~$35k new car,” Jonas wrote.
--With assistance from Esha Dey.
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