A car market that goes up eventually comes down, and that’s what’s happening now in the U.S. As Bloomberg Gadfly’s Shelly Banjo writes, investors in Asia’s automakers should pay close attention.
Ten of the largest Korean and Japanese manufacturers take in an average 33 percent of revenue from North America. If U.S. sales see a steep decline to around 15 million units a year -- essentially reverting to a decades- long mean -- both profits and valuations, as this chart illustrates, will suffer.
Investors will get further insight Tuesday as automakers report U.S. sales for July.
Source: Bloomberg Pro Terminal
Jr Trader Ivan Ivanov
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