Turmoil in Europe’s car sector could hit the central European economy and hurt banks’ asset quality, S&P Global said on Tuesday, although it added that lenders were strong enough to withstand stress in their automotive portfolios. Automakers across Europe have announced plant closures and big layoffs as they struggle with weak demand, high costs, competition from China and a slower-than-expected transition to electric vehicles. The sector is a mainstay of central Europe’s economic growth, accounting for 5% to 10% of the region’s gross domestic product and 5% of its employment, according to S&P.Read More
Central Europe’s banks can withstand car sector turmoil, S&P says
