Although the automotive industry is one of the major sectors in the world economy, investment itself, from the point of view of a Central European, is focused more on the global market than on the local market. In addition to the carmaker’s event, there is also a fuel producer.
Unfavorable situation in the automotive industry
The situation in the automotive industry in the world is currently not fully favorable and only car manufacturers that develop in different markets are able to survive. From those matures and to developments in various parts of the world.
This is mainly due to weak economic growth and the crisis in the housing market both in the USA and in Western Europe. The sharp rise in food and fuel prices, which consumers are eager to spend on new cars and petrol, also plays a role. For example, the results of the American carmaker General Motors, which has been ahead of Toyota Motors in car sales and thus become a world leader, are mainly due to the decline in sales on the American market. Save the carmaker sales in Africa, at the Central Entrance and in Central Europe.
On the contrary, European carmakers such as Peugeot Citron, Volkswagen and Fiat will be able to survive the market thanks to the production of low-consumption cars and their operation in various developing countries, where the demand for cars is still high. In the first half of the year, Peugeot Citron reported a 50% year-on-year increase in net profit. Volkswagen thus benefited from the launch of the model. Even Fiat, which represents a complete reversal of pbh, was able to exceed the analyst’s estimates of its plron results.
For now, car manufacturers will be able to establish themselves on world markets, but with the sale of cars in Europe and the USA, it looks bad. In June, sales in Europe fell by 7.7%, and most analysts saw an overall decline this year and five. Car sales in the US will fall and it turns out that this year will be the worst industry for cars in the US in the last ten years.
Central Europe is a major center of car production
Central Europe is currently one of the regions where the largest car in the world is made. There are only 15 car factories in Poland, the Czech Republic, Hungary and Slovakia. Production of brands such as Volkswagen, Chevrolet, Toyota, Peugeot, Kia, Fiat and officially in 2009 Hyundai should start production in Moravia. Producers of trucks and buses have a significant share in the total production of cars.
As this is an international company that does not have shares in this region, it is not possible to invest directly in the shares of companies operating in the Czech Republic, for example on the stock exchange. Toyota Motors, for example, has shares in the Japanese stock exchange, and in some ways on the New York stock exchange. In the Central European region, it is possible to invest in the automotive industry indirectly, through shares of a subcontractor or a sector associated with the automotive industry.
For example, the company Unipetrol, which is engaged in the production of fuels and oil, is indirectly connected with this sector. According to me, it can be the metallurgical industry, road transport or the sale of pouitch cars, in this case the company AAA Auto, which has not been successful in the last year, but the company is working to improve the situation, so for example decided to close all branches in Poland.
Opportunities are corporate bonds, ie bonds issued by companies operating in the automotive industry. The maturity is usually over one year and the coupon payment is not on government bonds. On the other hand, there is a risk associated with them.