In the meanwhile and during the unstable situations throughout the whole world, each analysis depends on the price of oil because of the correlation between oil and auto industry. In the Asian market, there is a big concern with the severe damages that happened in Japan because of the magnitude earthquakes. These damages impacted one of the major countries in the Asian market, Japan.
Analysts are not comfortable with the Japanese's auto companies because of two reasons: first, the issues that are impacting some factories and centers of Toyota and Subaru; second, the massive recalls that Toyota suffered from. Therefore, buying Toyota's or Subaru's stocks is not a good decision, especially in the meantime.
However, they added that Hyundai is thriving now while the automotive industry in Japan is suffering. This would let the brokers think of the Korean auto companies and buying their stocks, especially Kia. Because Kia proved that its cars are efficient in consuming gasoline. This an important factor for customers because of the issues that are going in the Middle East which affected the oil’s prices. So, people are likely to buy small or efficient cars which Kia already provides these choices.
I think that the market for big cars, such as trucks and big SUVs is not profitable that much because of the gasoline prices. Now, the price per gallon is almost $4 which is very high. To fill up the tank for big cars, it costs at least $70. This is really a critical issue, especially for those who have big cars and drive long destinations. Because they sometimes need to fill up their tanks twice a week which costs a lot. This might affect the market for inefficient cars that consume a lot of gasoline.
interesting post cause
ReplyDeletewhat we need to think about in the industry
is also the cause from the natural disaster and it makes me to think a lot more about it