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US autos: grinding to a halt

After DaimlerChrysler’s warning that its American unit is likely to make a €1 billion second-quarter loss, Credit asks what this may mean for the company and for the autos sector in general

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Steven Zhu
ABN Amro

Underweight
Moody’s action on June 13 to cut GM’s long-term rating to Baa1 with a negative outlook was yet another reminder of the continuing difficulties in the North American car market. Only two weeks ago, DaimlerChrysler (DCX) was forced to issue a massive profit warning because of the intensely competitive state of the North American market.

The plight of GM and DCX

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