Fitch issues commentary on EU auto makers
- Fitch: China's slowing economy and the recent sharp falls in its stock market are likely to pose a bigger challenge for European carmakers than a moderately weaker yuan. We believe that the sudden yuan devaluation of around 4% on Tuesday and Wednesday will not significantly affect European carmakers' sales and earnings in 2015, although it could reduce cash generation. But the recent fall in share prices on China's stock market and a weakening economy have harmed consumer sentiment and wealth. This contributed to a deceleration in new vehicle sales growth rates in China in the past 12 months, including the recent year-on-year sales declines in June and July. - Source TradeTheNews.com