But watch out for the return of over-supply, pricing pressure, new capacity though is more efficient, flexible - Europe’s prospects may be murky, but the US market is accelerating away with experts leapfrogging over each other as they raise sales estimates
Ford talked about US Light-Vehicle sales reaching 17 million again, but Morgan Stanley warned that as car makers raised output to meet burgeoning demand, there was a danger that the old bugbear of over-supply would lead to the need to slash prices and added discounts to move the unsold metal.
Moody’s Investors Service raised its forecast to 15.75 million for light vehicle sales in 2013 from a previous estimate of 15.25 million, which would be an increase of 8.7 per cent over 2012.
“For 2014 we anticipate a further increase of 2.9 per cent to 16.2 million, which demonstrates a remarkable recovery from the cyclical trough in 2009 when only 10.4 million units were registered,” Moody’s said...more
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