MSCI CONFERENCE US metal producers advised to rein in auto expectations
Sep 22, 2010 | 12:01 PM
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North America's metal producers and processors may feel buoyed by automotive production in 2010 compared with last year, but the unvarnished opinion from one auto industry consultant is they should be lowering their forecasts for automotive metal needs for the next decade.
"Demand factors are going to remain negative for some time," Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc., Richmond Hill, Ontario, said at the Metals Service Center Institute's Economic Forecast Summit in Chicago.
He listed a host of reasons for his analysis. First, the corporate average fuel economy goal of 35.2 miles per gallon by 2020, even if the requirement gets pushed further into the future, will "force a reinvention of the product," meaning smaller, lower-power, high-content cars, much like those that European automakers have been producing for more than 10 years.....
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