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Introduction: Transport Manufacturing Download PDF

The transport manufacturing industry is composed of companies that manufacture vehicles, vehicle parts, and the infrastructure that supports them. This business of planes, trains, and automobiles plays an important role in sustaining the global nature of the lives most people lead—getting products made all over the world to local retailers.

Risk Description

Automotive Industry
The world car market will be tight in 2008 with volumes down in North America, Japan, and Western Europe. Demand will remain strong in emerging markets.

Most major carmakers in industrialised countries revised their domestic production programmes downward early this year: The more difficult conditions for access to consumer credit and high petrol prices at the pump will induce households to put off car purchases until late 2008 or even to next year. The three industrialised regions will nonetheless continue to produce most of world production (56 per cent).

American carmakers will suffer most from the slowdown and should thus continue to run operating losses. European and Japanese carmakers — with broader ranges, productss consistent with demand, and positive profitability — are better equipped to withstand this cyclical downturn.