Geopolitical risk, high oil prices and faltering consumer confidence all seem to spell trouble for US and to a lesser extent European auto manufacturers. GM in particular looks prone to an S&P downgrade in the near future. Fears that the global recovery trend is shaky may well bring downward pressure on auto spreads.
Innovation is crucial: new product launches in the autumn could potentially steel the US automakers against unhelpful macroeconomic factors. But competition in the SUV/light truck ma