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Showing results for tags 'economy'.
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GM, Ford Brace For Economic Downturn; German Economy Shrinks
Drew Dowdell posted an article in Automotive Industry
Ford and GM, the U.S.'s top two auto manufacturers are bracing themselves for the worst. They have been running economic modeling to determin the steps they would take given a medium or severe recession in the US and across global markets. General Motors has a stockpile of $18 billion in cash while Ford has $20 billion saved up. GM is relying on deferring non-essential capital expenditures and a shift in production to lower cost vehicles as part of its plan to save costs in the event of a a strong downturn. Ford says is is evaluating its future moves. Fears of a recession have plagued Wall St. most of 2019 while a trade war with China rages on. Higher costs of materials due to tariffs is adding to the pain of weak product demand in the U.S., China, and Europe. In Germany, Europe's biggest economy, growth shrank by 0.1 percent in Q2 2019 as trade conflicts and auto industry troubles weighed heavily on the economy. Both exports and lagging demand at home have put a strain on German automakers already looking to slash costs. Today, a strong signal that a recession is looming appeared as the 10-year treasury yield dropped below the 2-year treasury yield while do Dow Jones Industrial Average sank over 450 points. Related: Honda Slowing Production, Cutting Shifts Nissan Profit Plunges 99%; 12,500 Job Cuts Eminent Ford Europe Laying Off Another 12,000 Daimler Books First Quarterly Loss in Ten Years -
Ford and GM, the U.S.'s top two auto manufacturers are bracing themselves for the worst. They have been running economic modeling to determin the steps they would take given a medium or severe recession in the US and across global markets. General Motors has a stockpile of $18 billion in cash while Ford has $20 billion saved up. GM is relying on deferring non-essential capital expenditures and a shift in production to lower cost vehicles as part of its plan to save costs in the event of a a strong downturn. Ford says is is evaluating its future moves. Fears of a recession have plagued Wall St. most of 2019 while a trade war with China rages on. Higher costs of materials due to tariffs is adding to the pain of weak product demand in the U.S., China, and Europe. In Germany, Europe's biggest economy, growth shrank by 0.1 percent in Q2 2019 as trade conflicts and auto industry troubles weighed heavily on the economy. Both exports and lagging demand at home have put a strain on German automakers already looking to slash costs. Today, a strong signal that a recession is looming appeared as the 10-year treasury yield dropped below the 2-year treasury yield while do Dow Jones Industrial Average sank over 450 points. Related: Honda Slowing Production, Cutting Shifts Nissan Profit Plunges 99%; 12,500 Job Cuts Eminent Ford Europe Laying Off Another 12,000 Daimler Books First Quarterly Loss in Ten Years View full article
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Alfa Romeo Goes Back To The Drawing Board Due To China
William Maley posted an article in Alfa Romeo
Last May, Fiat Chrysler Automobiles announced some ambitious plans for Alfa Romeo. By 2018, the brand would hopefully sell 400,000 vehicles annually thanks to 5 billion Euro investment that will lead to the introduction of eight new models. This past week, FCA is going back to the drawing board. Speaking with analysts on the company's third-quarter results, CEO Sergio Marchionne said due to the weakness of imported luxury vehicles in the Chinese market, FCA is currently reassessing their plans. Marchionne said a good chunk of the 400,000 vehicle sales was assigned to China. But in light of what is happening in the country, those proposed sales will need to absorbed into other regions. Now all of the vehicles that Alfa Romeo that Alfa Romeo has planned will still be developed, but the brand will need to 'rejig' its plans to focus on launching models that will suit Europe and North American rather than China. Plans for the revised rollout will happen in January. Source: Automotive News (Subscription Required) -
Last May, Fiat Chrysler Automobiles announced some ambitious plans for Alfa Romeo. By 2018, the brand would hopefully sell 400,000 vehicles annually thanks to 5 billion Euro investment that will lead to the introduction of eight new models. This past week, FCA is going back to the drawing board. Speaking with analysts on the company's third-quarter results, CEO Sergio Marchionne said due to the weakness of imported luxury vehicles in the Chinese market, FCA is currently reassessing their plans. Marchionne said a good chunk of the 400,000 vehicle sales was assigned to China. But in light of what is happening in the country, those proposed sales will need to absorbed into other regions. Now all of the vehicles that Alfa Romeo that Alfa Romeo has planned will still be developed, but the brand will need to 'rejig' its plans to focus on launching models that will suit Europe and North American rather than China. Plans for the revised rollout will happen in January. Source: Automotive News (Subscription Required) View full article
