Auto, Moody’s: risk of frozen margins, inflation and rate hikes weigh

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Increasingly fierce competition and households in difficulty as a result of inflation and rising interest rates could produce a Big Cold phase for the profitability of the major car manufacturers. This is Moody’s analysis in the June Outlook. Monetary policies “will have a negative impact on consumer demand in the automotive sector and house margins are likely to decline by an average of 50-100 basis points within the next 12-18 months”, towards…