Mexican Media Brands
GM Remains Optimistic After Brexit
General Motors Co. hasn’t changed its 2016 projections for Europe and the U.S. following last week’s vote by Great Britain to leave the European Union.
#labor
Share
General Motors Co. hasn’t changed its 2016 sales projections for Europe and the U.S. following last week’s vote by Great Britain to leave the European Union.
It will take several months to fully assess the impact of the referendum, GM chief economist Mustafa Mohatarem tells reporters in Detroit. He says the company will wait for England to name new leaders and set rules for the transition process before it makes any forecasting adjustments.
GM still expects its European operations to be profitable this year, which Mohatarem notes would be the first time in more than 15 years. The carmaker’s two plants in England, which accounted for 13% of Opel and Vauxhall vehicles built last year, are running at near capacity. But Mohatarem says output could be increased if currency exchange rates remain favorable to export more vehicles to EU countries.
GM also is sticking with its bullish forecast that calls for record industry sales in the U.S. of 17.6 million light vehicles this year. If anything, Mohataram says, the Brexit vote could have a positive effect in the U.S. because he believes it's less likely that the Federal Reserve will raise interest rates this year.
U.S. light vehicle sales are up 1.2% through May, according to Autodata Corp.
RELATED CONTENT
-
Young Auto Engineers Say Their Employers Don’t Measure Up
Only one-third of U.S. automotive engineers below the age of 36 agree that their work experience matches the way their employers’ portray themselves publicly, according to new research.
-
What Suppliers Need to Know Right Now
This is a time of reckoning for the auto industry, says Paul Eichenberg. He has some recommendations as to how companies can make their way through it.
-
Is Brexit U.K. Auto’s Waterloo?
French manufacturers, particularly those in the automotive sector, are making significant investments in robotic technology, according to the International Federation of Robotics (IFR). The organization says that its most recent figures show that the number of robots installed in the French car industry rose 22 percent, to 1,400 units.