Fitch: Outlook negative for automakers

Fitch Ratings said that the global outlook for the automotive industry in 2009 is negative as global auto manufacturers continue to face challenging prospects for the year to come.

"Weak GDP growth and the effects of the international financial crisis will continue to have a significant impact on the global auto industry, creating downwards pressure on carmakers' credit profiles in the short to medium term," Emmanuel Bulle, senior director in Fitch's automotive team, said in an agency release. "In addition, the length and severity of the current crisis are still unknown, whilst manufacturers' responses to the crisis are still evolving."

While only the U.S. automotive industry had a negative outlook at the start of 2008 - the outlook for Indian manufacturers' credit profiles was positive and Japanese, European, South Korean and Chinese manufacturers had a stable outlook - the agency said the outlook is now negative across the whole auto sector.

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