General Motors (NYSE: GM) warned that losses in Europe will be greater than expected in the second half, according to the Wall Street Journal. The news was easy to forecast. None of the large car manufacturers that do business in Europe will do well this year. Management at Ford (NYSE: F) recently told the press that the company would suffer larger-than-expected losses in the current quarter.
Too many people are out of work in Europe. And most auto firms cannot cut costs quickly. They face resistance from strong unions and local governments bent on doing whatever they can to save jobs. The negative outcome of the slow sales and inability to cut expenses quickly is that losses among all the companies in the industry will total well into the billions of dollars in Europe this year. There does not appear to be much the manufacturers can do about it.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
