Home / Stocks / GM, Ford planning for possible economic downturn: executives

GM, Ford planning for possible economic downturn: executives

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”By Ben Klayman” data-reactid=”31″>By Ben Klayman

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”(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.” data-reactid=”32″>(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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”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.” data-reactid=”33″>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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”Ford Motor Co 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.” data-reactid=”34″>Ford Motor Co 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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”General Motors 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.” data-reactid=”35″>General Motors 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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”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.

” data-reactid=”36″>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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”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.” data-reactid=”37″>”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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”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.” data-reactid=”38″>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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”Ford said it was proactively evaluating its future moves, as it works with economists to model the severity of a possible recession.” data-reactid=”39″>Ford said it was “proactively” evaluating its future moves, as it works with economists to model the severity of a possible recession.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”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.

” data-reactid=”40″>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.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”br” data-reactid=”41″>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.

8em)–sm” type=”text” content=”(Reporting by Sanjana Shivdas in Bengaluru and Ben Klayman in Detroit; Editing by Anil D’Silva)” data-reactid=”42″>(Reporting by Sanjana Shivdas in Bengaluru and Ben Klayman in Detroit; Editing by Anil D’Silva)

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