Moody's expects a decline in global passenger car sales
International rating Agency Moody's announced that the forecast for the global auto sector for the next year is negative due to the reduction of sales of cars in the world for the second consecutive year in 2020
"We expect that sales of passenger cars in the world will shrink for the second consecutive year, a decrease of 0.9% in 2020 after the expected decline of 3.8% to 2019", is given in the message words of senior Vice President of the Agency Falk Frey.
the Negative Outlook in General and the decline in sales due to weak economic growth in key markets such as China, EU, Germany, USA and other countries "Big twenty" adds Moody's.
as a result, In North America and Europe is also expected to decrease revenues auto parts suppliers. Thus, the average EBITA for the North American suppliers will fall by about 10% in 2019, and then recovers to 1% in 2020, while total revenue growth in the European auto parts suppliers will continue to be weak.