CENN - Auto stocks: Best and worst Q1 performers as well as a look to Q2
The automobile sector comes off a rough road in Q1 when visions of a Green Tidal Wave faded into the realities of commodities inflation and more supply chain disruption. Looking ahead, Morgan Stanley warned that the combination of 40-year high CPI inflation, record gas prices and interest rate regime change may create conditions for an automobile buyers' strike. After holding discussions with dealers, the firm believes the first signs of demand destruction will be with low-income consumers buying gas guzzling trucks and SUVs. The top three selling trucks in the U.S. are the Ford F-Series (F), Ram Pickup (STLA) and Chevrolet Silverado (GM), which all feature a fuel economy rating below 20 miles per gallon. Big sellers like the Honda CR-V (HMC) , Toyota RAV-4 (TM) and Nissan Rogue (OTCPK:NSANY) are all below 30 mpg. The high level of gas prices and incrementally growing concerns of a recession in 2023 are seen starting to
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Auto stocks: Best and worst Q1 performers as well as a look to Q2