COMPANIES The slow pace of recovery in the US car market will hamper General Motors and Chrysler from accessing equity markets next year, according to a report by Fitch Ratings, reinforcing growing caution at the two Detroit carmakers over their return to public ownership.
“While economic recovery is looming in the US, Fitch expects a much longer, drawn-out sales recovery for autos in 2010,” the ratings agency said in its annual industry outlook on Monday. It added that even a rebound in light-vehicle sales to 11.1m units from the 10.3m projected this year “would leave much of the industry awash in negative cash flow”.
