Shifting Gears: The U.S. Auto Sector's Road Ahead

In the latest episode of "Know More. Risk Better.," host Zachary Griffiths is joined by Todd Duvick, Head of Autos research, to discuss the recent downgrade of the U.S. auto sector's performance rating. Despite the sector's significant outperformance since upgrading Autos to Outperform in November 2023, Duvick explains valuations reflect the auto sector’s improved supply-demand balance and the repricing of Ford’s bonds following its upgrade to investment grade. The episode delves into the implications of these factors on the auto market and explores the evolving dynamics of electric vehicle adoption and the potential challenges posed by Chinese competitors.