July 24, 2014
DETROIT (AP) - A leading auto industry analyst says the auto industry needs to brace itself for an extended period of weak demand from consumers because of tough economic conditions.
Deutsche Bank's Rod Lache told the Society of Automotive Analysts conference Tuesday that there are few encouraging signs that would indicate a quick turnaround in the auto sector. He says sales in the U.S. will be hurt by high unemployment, low consumer confidence and high consumer debt.
Lache says the U.S. auto industry will need to undergo massive restructuring and there's no guarantee that all of the U.S. automakers will survive.
He says over time, there will likely be consolidation in the industry, which could swallow some of the smaller companies like Chrysler LLC.
(Copyright 2009 by The Associated Press. All Rights Reserved.)