Morgan Stanley Sees Detroit Largely Exiting American Car Market
(Bloomberg) -- General Motors Co. may follow its Detroit peers in taking the off ramp from the American passenger-car market, according to Morgan Stanley.
“All three of the Detroit Three automakers have something in common: They’ve all been exiting the car business,” Jonas said in a Bloomberg Television interview. “We think that GM is going to follow” Fiat Chrysler and Ford, he said.
The transformation of GM, Ford and Fiat Chrysler’s lineups will factor in how the companies approach negotiations with the Trump administration and California regulators over the future of fuel economy standards, Jonas said. On one hand, the automakers will press for relaxed federal rules to protect their truck and SUV businesses. At the same time, the manufacturers are investing heavily in electric vehicles to appease the Golden State.
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