TOKYO -- Worried about an economic double dip and more massive hurt for the auto industry?
Don't. Thanks to huge cash cushions, the world's automakers are much better prepared for a downturn than they were in 2008, say the analysts at IHS Automotive.
Car companies are holding a quarter-trillion dollars in cash and equivalents, says Charles Chesbrough, senior principal economist at the industry consultancy. And the overall cash-to-revenue ratio is a healthy 19.3 percent, insulating from them a financial crisis.
"If it happens again, the manufacturers are in a much better position to protect themselves," Chesbrough said at an IHS Automotive conference in Tokyo last week.