We wanted to flag a few highlights in today's Wolfe Research Auto Daily....
IHS September Revisions: New IHS forecasts imply some downside to supplier numbers
IHS released updated production estimates, cutting global production estimates 100+ bps in 3Q and 4Q. We believe that this may suggest risk to Q3 assumptions of suppliers.
GT: Fine-tuning our 2019 estimates, as 2020 tailwinds become increasingly clear
Michelin’s compilation of global tire demand data (July and August) reflected weaker than expected demand for replacement tires. We believe that this poses some risk to Goodyear’s Q3. But starting in Q4 we believe that improving Price-Raw material spreads will become the dominant earnings driver… 2020 tailwinds are encouraging
ADAS penetration rates continue to climb
According to Canalys Research estimates, AEB penetration has reached 63% in the US (up 20pts YOY) and 56% in Europe (up 9pts YOY).