Global auto sector returns to profit: Scotia Economics
Strong sales have driven the global auto industry back into profitability, according to the latest auto report by Scotia Economics.
It says the five largest automakers posted earnings of US$5.5 billion in the first quarter of the year.
Bank economist Carlos Gomes says that was a sharp turnaround from annual losses averaging more than US$22 billion from 2007 to 2009.
Gomes says profitability improved in every region last quarter, especially in North America.
Profitability per vehicle in North America jumped to more than US$1,500 in early 2010, compared with losses since last September.
"The global economy continued to gain momentum through the first quarter of 2010, with growth picking up to roughly four per cent year-over-year - the fastest pace in two years," said Gomes.
"This acceleration lifted global car sales 25 per cent above a year earlier, to a level only marginally lower than in early 2008. However, volumes still remain nearly five per cent below the industry peak set in mid-2007."
