DBRS Morningstar published a commentary titled “Perfect Storm Brewing: Detroit 3 Labour Talks with UAW.” Key highlights include: -- The current round of discussions between the Detroit 3 and the UAW could prove contentious for several reasons, including material macroeconomic headwinds, high inflation, rising interest rates, and cost of living. -- The industry’s transition to electric vehicles, wages, and job security will be key negotiating points. -- New leadership for auto manufacturers and...
Climate change risk already affects the major automotive issuers we rate; essentially all automotive original equipment manufacturers (OEMs) have made substantial investments as they shift to electric vehicle (EV) production and away from internal combustion engine vehicles. In the near term, our outlook for the sector is neutral, with company credit profiles supported by reasonable profitability, robust liquidity positions, and conservative financial postures. Over the longer term, this EV tr...
On January 26, 2023, DBRS Limited (DBRS Morningstar) upgraded Stellantis N.V.'s Issuer Rating and Senior Unsecured Debt rating to BBB (high) from BBB. Concurrently, DBRS Morningstar also upgraded Stellantis Finance US Inc.'s Senior Unsecured Debt rating to BBB (high) from BBB and changed the trends on all ratings to Stable from Positive.
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