U.S. Automakers Well Positioned for 2012, Fitch Says
Fitch Ratings said it expects the financial profiles of U.S. automakers and parts suppliers to remain strong in 2012 despite sluggish global economic growth and weaker-than-expected North American light-vehicle demand.
CHICAGO — Fitch Ratings said it expects the financial profiles of U.S. automakers and parts suppliers to remain strong in 2012 despite sluggish global economic growth and weaker-than-expected North American light-vehicle demand.
Fitch reported that it believes the Detroit Three and the largest U.S. parts makers are well positioned from both a cost and liquidity standpoint to withstand significant demand pressure this year. As U.S. light vehicle sales continue to grow modestly to approximately 13.2 million units in 2012, credit profiles are likely to remain relatively stable if a slowdown in unit sales and softer pricing undercuts margins this year.
Fitch estimates that the break-even industry sales level for the Detroit Three and major parts suppliers is currently about 10.5 million light vehicles, corresponding to 2009 recessionary sales volumes. Although U.S. light vehicle sales are expected to grow this year, the forecasted size of the market will remain well below the 17 million-unit levels seen from 1999 through 2006.
The company anticipates the U.S. industry will struggle to exceed annual sales of approximately 15 million light vehicles. With auto sales in Western Europe likely to fall this year and sales growth rates declining in key emerging markets, U.S. automakers' operating results in 2012 will depend more directly on volume growth and pricing traction in the U.S. market, Fitch said.
Although a global downturn would impede the progress of U.S. automakers in their efforts to strengthen their balance sheets, most Fitch-rated issuers have sufficient cushioning in their credit metrics to withstand a significant demand shock without driving negative changes in outlooks or ratings, according to the company. This improvement in the U.S. auto industry's resilience forms the primary foundation of Fitch’s positive outlook for the industry in 2012.
For more information, visit www.fitchratings.com
More Auto Finance

Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →