General Motors and Ford say they are getting ready for a possible financial downtown which could be triggered by the continuing trade war involving the United States and China, Reuters reports.
Speaking at a current J.P. Morgan Conference in New York, Ford North American chief financial officer Matt Fields explained the automobile manufacturer has a $20 billion money buffer in the event of another international recession. Similarly, GM’s fund head Dhivya Suryadevara showed at precisely the exact identical occasion that Ford’s largest rival has $18 billion in money if necessary.
General Motors revealed at the summit that it has modeled both severe and moderate downturn scenarios very similar to this 2008-2009 financial meltdown to make sure it could weather the storm.
“It’s something that we always keep watching and upgrading to make sure that we’re all set for when the downturn does come,” Suryadevara explained.
Besides ensuring it has a great deal of money available, General Motors is considering deferring non-essential capital expenditure and changing into lower-priced vehicles as part of its own & ldquo;downturn planning. ”
Ford says it’s “&; rdquo; assessing the future of this economy and is working together with specialists to model the effect of a possible recession.
This season has proved to be extremely explosive on the world economies as several economists try to forecast the upcoming economic downturn. Tit-for-tat tariffs between the United States and China in recent months have already had harmful impacts on the manufacturing and sales of cars across the world due in part to increasing raw material costs.
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