Investment bank Goldman Sachs said US vehicle makers are likely to experience sequential sales gains this month and continue their profit-eroding incentives into the first quarter or 2004, according to Forbes magazine.
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Forbes cited the research firm as saying that the situation presents a good reason for investors to purchase parts suppliers such as Lear, Johnson Controls and Magna International. Goldman Sachs reportedly added that fourth-quarter production cuts at General Motors, Ford and DaimlerChrysler are unlikely “since they would jeopardise earnings,” the magazine said.
Forbes said that Goldman Sachs concluded that the “continued profitless prosperity” of the incentives-laden US car makers “supports an investment case for suppliers.”
