Industry Classification Systems

CFA Level I Equities
#1

Hi all.

Could you give me an explanation why the answer for this question is not B (Industrial durables)?

A automotive manufacturer is most likely classified in which of the following industry sectors?
A Consumer staples
B Industrial durables
C Consumer discretionary

I know that “an automotive manufacturer is company that manufactures goods used in the production process of an automobile or become part of an automobile”, so could it be the manufacturers of capital goods as described in curriculum?

#2

Automobiles are primarily sold to consumers so it would not be classified as an industrial company. An industrial is going to be something like a GE who sells to other companies.

1 Like
#3

Thanks for your reply. The question is asking about “automotive”, not “automobile”. Were these 2 phrases the same?

#4

Where did you get this question?

#5

it’s in 2020 Curiculum (L1V4).