...Positive Outlook: Fitch Ratings' positive outlook on the European automotive sector reflects our expectations for a modest increase in global new vehicle sales, including further growth in Europe, combined with the benefits from past cost-saving measures. Two European manufacturers, Jaguar Land Rover Automotive plc (JLR) and Peugeot SA (PSA), have a Positive Outlook while all other carmakers have Stable Outlooks following Renault SA's upgrade and Fiat Chrysler Automobiles NV's (FCA) Outlook change from Negative in 2014. Improved Earnings: Restructuring and cost-saving measures implemented by most manufacturers in the past two to three years are bearing fruit and bolstering overall profitability. This should offset the fierce competition and continuous price pressure globally and the remaining production overcapacity in Europe. We expect the European sector's combined operating margin to increase to more than 6% in 2015, from 5.6% in 2014 and 5% in 2013. In particular, we do not expect any...
