slowing Chinese demand and European regulations hit auto stocks
Oct 17, 2018
After weakening car demand in the Chinese markets and fuel regulations from Europe, the auto stocks were taking a plunge according to Goldman Sachs. Due to the struggle to adapt to the new ruling regarding fuel emissions in Europe, and higher tariffs by the U.S. auto sector stocks are down by 6 percent, its lowest since 2011. The Chinese issue and the adaptation to the European Union’s new WLTP (Worldwide harmonized Light vehicles Test Procedure) are taking its toll on the auto market. GS also added that this could bring down earnings for auto suppliers by 4 percent.