Automakers fall as Moody's predicts slow growth
NEW YORK (AP) — Shares of automakers fell on Monday after Moody's Investors Service said that sluggish demand in Europe and weakening sales in China will hurt the growth prospects for the global auto industry.
Moody's cut its prediction for 2013 sales of light vehicles to growth of 2.9 percent from a January prediction of 4.5 percent. Moody's predicted that light vehicle sales in western Europe will shrink 3 percent next year because of weaker markets in southern Europe, especially Italy.
Moody's is now predicting sales growth for light vehicles in China of 8.5 percent next year, down from 10 percent in January.
Moody's said it expects to see carmakers restructure to get rid of extra capacity in Europe.
Shares of General Motors Co. fell 27 cents to $23.87 and Ford Motor Co. fell 16 cents to $10.37.9. U.S. shares of Toyota Motor Corp. fell $1.27 to $81.91 while Honda Motor Co. fell 75 cents, or 2.2 percent to $33.95.