Chart: Lyft's Projections Don't Bode Well for Auto

General Motors is Cutting Production Volume

Two weeks ago we asked whether there'd be an uptick in auto distress. We didn't really even touch on to what degree ride-sharing will impact car ownership though we did point out GST Autoleather's assertion in its bankruptcy papers that Uber and Lyft have had an affect on OEM production levels. Well, this doesn't bode well for suppliers then. Take this chart for what it is: a bit of marketing, a bit of projection. After all, it is from Lyft directly and, of course, they want to show "up and to the left." Still, just imagine what this means if true.

Notably, General Motors ($GM) reported numbers this past week that surprised to the upside and the stock popped. They did discount heavily, but whatevs. Significantly, GM also noted a 26% decline in production. That, too, to our point, cannot bode well for the players in the auto supply chain. Keep an eye on auto - 3% GDP growth notwithstanding. 

Source: Lyft