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Asia to drive car industry 'even further'
There is a lot of noise around car makers at the moment; GM, Ford and Renault have all posted higher-than-expected profits. If they play it right and focus on the Asian markets, in particular China and Japan, then figures could be driven even higher, according to Saxo Bank’s Peter Garnry.
Whilst analysts expect US car sales to hit 16 million this year, it is a small figure compared with the 40 million units that China is supposed to see in terms of car sales by 2020. In addition, a weaker Yen is helping boost Japanese exports, and therefore Japanese car manufacturers.
GM said profits were caused by aggressive cost-cutting and higher prices on new models such as the 2014 Chevrolet Silverado pickup truck and Impala large. Renault, France's second-biggest carmaker, said labor-cost reductions and higher vehicle prices helped offset slumping sales.
Data out earlier this month showed that European car sales slumped to a two-decade low.
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