Evaluating Investment Opportunities in the Global Automotive Sector
This is the Tenth in a series of Independent research produced by the Murray Wealth Group Research Team. The purpose of this series is to provide insight into our portfolio construction and how our research shapes our investment decisions. We welcome any feedback or questions you may have on these monthly commentaries.
The Global Automotive sector is a complex web of original equipment manufacturers (OEMS for short; Ford, Nissan, Tesla), suppliers and of course, customers, mostly retail, but also including trucking companies, rental car services and other commercial vehicle applications. Tangled into the physical asset chain is the financial aspect of lease/financing transactions, which have their own set of complexities.
The sector has seen major disruption throughout its history, starting with the introduction of assembly line manufacturing a century ago…..to the rise of Japan, Korea and now China in automotive production…..to an ever-increasing use of computing/technology. This report will outline where we stand in the auto cycle and how new disruptors will affect the investment landscape and opportunities, we see for good investment returns.