05 November 2007 18:40 [Source: ICIS news]
By John Waggoner
HOUSTON (ICIS news)--The US automotive sector should soon rebound from weak demand and troubles in the financial sector, chief executive Mohamed al-Mady of Saudi Basic Industries Corporation (Sabic) said on Monday.
“The housing market and the financial crisis may have a bearing, but we hope it is limited and the ?xml:namespace>
Sabic in May announced the acquisition of
US carmakers have been plagued in recent months by low demand.
Turmoil on the financial markets since August, and the erosion of guarantees for subprime mortgage-backed securities, had led to concerns by some analysts that the situation could aggravate carmakers’ woes.
Demand could suffer in the short term if credit tightens or if
“Third quarter’s figures were still good. It is quite remarkable, but things do change,” he said.
The cyclical nature of the
“These things may have a short-term effect,” he said. “We are very lucky that we bought the company in the twilight of this financial crisis.”
Sabic intends to continue advancing technology that will help automakers manage low demand through energy efficiency and other benefits, he said.
“It will give automakers an edge in dealing with Sabic,” he said.
If Asian manufacturers expand in the
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