Chemical giant BASF is cutting its coatings business but expects the global automotive market to imp

Chemicals giant BASF expects the global auto market to improve slightly this year, a company spokesman said Thursday, even as the group announced cuts in its German coatings business. Basf, the world's largest supplier of automotive chemicals and plastics, said on Thursday it would cut 200 jobs at its coatings plant in Munster, Germany, by 2021, citing continued weakness in the automotive market. Research firm LMC Automotive said in a report that global light vehicle sales fell 7 percent in May, dragged down by stagnation in the United States and Europe. "The global auto industry is experiencing a sustained downturn not seen since the Great Recession," the report said. Speaking at an event in Detroit, Bank of America Merrill Lynch analyst John Murphy said U.S. auto sales have been supported by commercial fleet purchases due to the Trump administration's 2018 tax overhaul, but large numbers of rent-outs and rising vehicle prices will hit future demand. However, a BASF spokesman said the company is not currently changing the assumptions underpinning its 2019 group earnings forecast. Basf is a company that produces petrochemicals, coatings, catalytic converters and foam plastics. The company said last month it was targeting operating profit growth at the low end of a 1-10 percent range in 2019, despite analysts' forecasts for a decline in full-year earnings. Basf said last month that despite a weak start to the year, its automotive business was expected to grow slightly for the full year.