Bank of America Merrill Lynch has recently presented a report called Car Wars, focusing on the state of the US automotive industry by assessing the upcoming models that are scheduled to hit showrooms between the 2016 and 2019 model years.
The influential Car Wars study that has been recently released sees the Detroit Three and much of the competition holding down the fort, with only Honda gaining market share and Nissan and the Korean automakers possibly losing some. As far as General Motors, the largest US automaker, is considered, the product planning, which includes the hastened introduction of the next generation of full-size pickups by a couple of years to the 2019 model year, will allow the company to keep its existing market share and pricing power. Ford is also well placed to keep its strong pricing policy that has been very successful across its latest introductions and the strategy will apply to the three new Lincoln models, as the carmaker makes great use of its new global architectures. Meanwhile, Fiat Chrysler Automobiles is going to come under lots of pressure if it wants to meet its ambitious marks set up by last year’s five-year strategy and the automaker could be successful in keeping its current market share thanks to the new minivan scheduled to come out of Canada.
The yearly Car Wars report by the Bank of America Merrill Lynch has reached its 25th edition and uses as indicators of corporate health the products to be introduced for the 2016 through 2019 model years. According to lead analyst John Murphy, the strong product pace will lift the industry as it continues its powerful reconstruction, with the BofA Merrill Lynch bullish on the overall industry – they believe it will peak at 20 million sales in 2018.