US Edition'Car Wars': Five Auto Insights Investors Should Know From Top BofA Analyst
- Bank of America's annual 'Car Wars' report led by John Murphy predicts a rough ride for the U.S. Auto industry over the next two years due to low replacement rates and product challenges.
- The report attributes the tough outlook to reduced new model launches, a pullback in electric vehicle investment, and failure of EV adoption to meet expectations amid limited charging access and high prices.
- Automakers are launching just 29 new models this year—the lowest in decades—with the Detroit Three's replacement rates predicted to hover around 16%, indicating stagnant market share ahead of major truck launches.
- Tesla leads in replacement rate at 22.4% signaling potential market share growth, while Nissan struggles with a 12.3% rate amid financial stress, job cuts, aging products, and unclear U.S. Commitments, as Murphy said, 'Nissan remains a mess.'
- Despite short-term challenges, Murphy predicts strong earnings growth in the coming years and recommends that automakers concentrate on their primary offerings—traditional gasoline and diesel SUVs and pickup trucks—to maximize shareholder value.
16 Articles
16 Articles
The Detroit News
'Car Wars' report from Bank of America sees 'rough ride' for industry in next couple years
The annual study led by analyst John Murphy predicts automaker performance in the U.S. market by looking at product launches over the next few years.
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BofA’s ‘Car Wars’ report warns of massive EV write-downs, market volatility through 2029
Auto manufacturers are entering what Bank of America Securities describes as the most volatile period in modern industry history, with electric vehicle (EV) investments faltering, core product strategies shifting, and global competition intensifying, particularly from China. In its latest Car Wars report, BofA analyst John Murphy warns that the next four or more years will bring “unprecedented” disruption for automakers, citing delayed EV adopti…
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