When the Engine Stalls: Cracks in the Auto Industry

From subprime delinquencies to falling used-car values, stress is spreading across the auto sector, a warning sign for the broader consumer credit cycle.

Last week, I wrote about cracks forming in the credit boom, a reminder that in every late-cycle environment, leverage tends to reveal its weak links first. I discussed how the TriColor and First Brands Group bankruptcies appear relatively idiosyncratic, with fraud playing a key role in their downfalls. But it’s no coincidence that both troubled companie…