Automotive Handbook (Second-Half 2015)

...Revised 2015 U.S. Sales Forecast: After a weaker-than-expected first quarter, light vehicle sales have exceeded Fitch's expectations through the second and third quarters. As a result, Fitch is raising its full-year U.S. light vehicle sales forecast to 17.2 million, which assumes that the seasonally adjusted annual rate of sales (SAAR) moderates a bit in the fourth quarter. Labor Contract Negotiations: The United Auto Workers and FCA US LLC (FCA US) reached agreement on a new four-year labor agreement in October 2015 that begins the process of closing the gap between Tier 1 and Tier 2 wages. The union has also reached a tentative agreement with General Motors Company (GM). Negotiations with Ford Motor Company (Ford) will resume once the agreement with GM has been ratified. Volkswagen Emissions Fallout: An industry shift away from diesel in Europe could be negative for certain U.S. suppliers, particularly if it is offset by increased vehicle electrification. However, such a shift could also...

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