Analysts Bet on Declining Auto Demand for Bearish Daimler Options
By Michelle Krebs August 11, 2010Daimler AG, parent company of Mercedes-Benz and smart among others, is poised to reverse 
this year's vehicle sales rally, according to a new analysts' report out of Europe, cited by Bloomberg News.
Reports from analysts at the Royal Bank of Scotland Group note concern with production overcapacity in Europe and lackluster consumer demand due to pressure on disposable incomes come and fragile household balance sheets.
In addition, European analysts say Daimler faces weaker truck demand in the U.S., higher costs in Germany and slowing economic growth and car sales in China.
To that end, the analysts are recommending investors buy bearish Daimler options. Daimler stock is up 11 percent so far this year.
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