S&P says outlook is positive for automakers

A recent investment review by independent rating agency Standard & Poor’s states a positive outlook for automobile manufacturers.  The review remains optimistic for automotive demand on a worldwide basis in 2011, with growing demand in China and weaker demand in Europe.  Despite rising material costs and the rising costs of oil, S&P sees a steady recovery for the automotive industry.  The earthquake and tsunami in Japan will continue to affect the availability of certain vehicles and problems with obtaining vehicle parts will affect production worldwide.  Projections include an increase of 12.9% to 13 million units in light vehicle sales for 2011 in the United States. S&P sees improved employment figures, consumer confidence and improved access to consumer credit as key to improved vehicle sales in the United States.  Specific segments where there should be continued improvement include light truck and sport utility segments, while luxury vehicle sales could also show improvement. (May 28, 2011)