Mr. Levy: 2010 is going to be much better than 2009. In 2009 auto sales were the lowest in about two and a half decades, at 10.4 million light vehicles sold. And now we are looking for 11.6 million light vehicles to be sold in 2010. I think we are going to have a rising tide across the industry. Most companies that made it through to this point will benefit from the higher production, whether they are an automaker like Ford or Toyota; or a manufacturer of auto parts, such as Johnson Controls or Magna International; or an automotive retailer, such as AutoNation or Group 1. The higher sales and higher production that we're forecasting this year should benefit them.
TWST: So is it a strong recovery across the board?
Mr. Levy: It's a cyclical industry, and it's coming off the bottom. We see it benefitting most companies, and we think this trend should carry on for the next few years. It won't be even across all companies, however. Some companies have issues that even higher sales volume can't help. Also too much of an increase of sales volume could create financial difficulties because of the need for cash flow and working capital to fund expanded production. But generally for the companies that I follow, that should not be an issue. It's more of an issue for some of the smaller suppliers.
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