Industry Report Card: Busy Production Lines Are Fueling Global Automakers' Operating Profits And Credit Quality Oct 10

Standard & Poors, October 2010

Abstract
Better-than-expected demand for cars boosted global automakers' production volumes in the first nine months of 2010, securing good capacity utilization and improving their operating results. Standard & Poor's Ratings Services anticipates that recovering light-vehicle sales and inventory rebuilding in the U.S. will keep production volumes up by more than 10% for the full year, while in Japan domestic vehicle production was up 17% year over year in July, boosted by a government purchase incentive that ran out in September. Even in Europe, where demand has slowed since national "cash-for-clunker" consumer incentives have ended, sales have held up better than we initially expected, owing to strong exports and strongly higher production as manufacturers restocked their inventories. This has improved automakers' credit...

Companies mentioned in this report are:
- Ford Motor Co.
- PACCAR Inc.
- AB Volvo
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Navistar International Corp.
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Tata Motors Ltd.
- Hyundai Motor Co.
- Mitsubishi Motors Corp.
- Kia Motors Corp.
- Scania (publ.) AB
- MAN SE

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Ford Motor Co.
- PACCAR Inc.
- AB Volvo
- Renault S.A.
- Nissan Motor Co. Ltd.
- Daimler AG
- Navistar International Corp.
- Honda Motor Co. Ltd.
- Toyota Motor Corp.
- Fiat SpA
- Peugeot S.A.
- Volkswagen AG
- BMW AG
- Tata Motors Ltd.
- Hyundai Motor Co.
- Mitsubishi Motors Corp.
- Kia Motors Corp.
- Scania (publ.) AB
- MAN SE

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