Monday, March 5, 2012

European Auto Sales Affecting U.S. Automakers


According to the Detroit News, the struggling automobile industry in Europe is having huge negative repercussions on American automakers, especially Ford and General Motors, who are projecting hundreds of millions of dollars in losses thanks to no one buying their vehicles in Europe. But it's not just them - other American companies, such as Chrysler, who have major stakes in Europe, as well as European-based auto manufacturers, are having major problems selling cars over there as well. The largest reason is the shape of the European economy, which has been getting worse ever since the global financial meltdown hit in 2008. Right now, Ford's projecting a $600 million loss, while GM has already lost $747 million and could be looking at more. This has also hit the European auto transport industry hard, as many auto shipping companies there have had to close up shop due to the lack of business. Hopefully things turn around, but right now...we'll just have to wait and see.

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