U.S. Automakers GM, Ford Planning for Possible Economic Downturn
【Summary】The top two U.S. automakers are preparing for a possible economic downturn, the companies said on Tuesday, as an ongoing trade war between Washington and Beijing fuels fears of a global recession.

(Reuters) - The top two U.S. automakers are preparing for a possible economic downturn, the companies said on Tuesday, as an ongoing trade war between Washington and Beijing fuels fears of a global recession.
Tit-for-tat tariffs have increased raw material costs for the global auto industry, which is already dealing with weak demand in both China and the United States.
Ford Motor Co (F.N) has a cash buffer of $20 billion for a potential downturn event, Ford North American Chief Financial Officer Matt Fields said at a J.P. Morgan Conference in New York.
General Motors (GM.N) has $18 billion in cash, with the potential to pay two years worth of dividends, the company's finance head, Dhivya Suryadevara, said at the conference.
GM has modeled both moderate and severe downturn scenarios similar to 2008-2009 to get a sense of how it might affect profitability and cash flow at the No.1 U.S. car manufacturer, Suryadevara said.
"It's something that we continually keep watching and updating to make sure that we're all set for when the downturn does come," Suryadevara said, adding that company does not see an imminent downturn.
Deferring non-essential capital expenditure and considering a shift to lower-priced vehicles are among the few things GM will look at as part of its "downturn planning" to save costs.
Ford said it was "proactively" evaluating its future moves, as it works with economists to model the severity of a possible recession.
Fear of a recession has dominated trading on Wall Street this year and spurred a bout of extreme volatility following President Donald Trump's announcement of a new round of tariffs on Aug. 1.
resource from: Reuters
-
Lucid’s New ‘Stealth Look’ Appearance Package for the Electric Air Sedan Compliments its High Performance DNA
-
Toyota’s Redesigned Prius May Get More Drivers Behind the Wheel of a Hybrid Vehicle
-
Toyota to Collaborate With Texas-based Utility Provider Oncor to Accelerate a Vehicle-to-Grid EV Charging Ecosystem
-
Stellantis to Idle its Illinois Assembly Plant Indefinitely, Citing the High Costs of Electric Vehicles
-
Apple Delays its Long Rumored Electric ‘Apple Car’ Until 2026, According to Sources
-
The World’s First Level-4 Automated Parking Feature Developed by Mercedes-Benz and Bosch is Approved for Commercial Use
-
Hyundai Motor Group Signs MoU with SK On Co. to Secure Batteries for EVs Built in the U.S.
-
Tesla May Build its Next Factory in South Korea, According to the Country’s Presidential Office
- Michigan-based May Mobility Closes on $111 Million Funding Round, Begins Development on Toyota’s Next-Gen Commercial Autonomous Vehicle Platform
- Toyota to Collaborate With Texas-based Utility Provider Oncor to Accelerate a Vehicle-to-Grid EV Charging Ecosystem
- Foxconn-led Mobility in Harmony Consortium Announces ‘Project X’, an Open, Modular Electric Vehicle Platform
- Tesla Rival NIO Plans to Produce its Own EV Battery Packs to Improve Profitability
- Electric Hypercar Developer Rimac Raises $500 Million Euro in Series D Round, Investors Include Porsche, Softbank and Goldman Sachs
- Volkswagen CEO Believes It Will Overtake Tesla in EV Sales by 2025
- Waymo To Partner With Uber Freight on Autonomous Logistics for the Trucking Industry
- Qualcomm and its Industry Partners Demonstrate C-V2X Technology in Georgia That Ensures School Buses and Fire Trucks Never Get Stuck at Red Lights
- Volkswagen’s Software Company CARIAD to Use BlackBerry QNX to Support ADAS and Autonomous Driving Functions of Future VW Vehicles
- Ford Reportedly Dropping 2024 Mustang Hybrid