GM's Planned Cuts Require Action by Its Suppliers

Workforce

In the face of what General Motors’ CEO Mary Barra calls a “fast-changing market,” this week General Motors announced its plans to end the production of certain vehicles, reduce its North American work force by more than 10%, and idle five plants in the United States and Canada. General Motors also announced that it plans to cease operations at two additional (but not yet identified) plants outside of North America by the end of 2019. The moves are intended to save General Motors $6 billion by the end of 2020. While the market reacted positively to the news — shares in General Motors were up 4.8% to close at their highest closing price in recent months — this action by General Motors will no doubt have an impact on its suppliers, as well as sub-suppliers within its supply chain.

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Global AV and EV Regulatory Approaches in Focus Recently at Frankfurt Roundtable

supply chain

Guest Author: Ruth Knox, Managing Associate, Linklaters LLP

Given the pace of change in the automotive industry and related technologies, combined with increasing regulatory scrutiny and recent developments in trade and M&A, there are several risks and challenges the global automotive industry can expect to deal with for the remainder of 2018 and beyond across Europe, China, and the United States.

Recently,  Foley & Lardner LLP and Linklaters LLP held a roundtable on the “Future of the Automotive Sector in Europe, China and the United States.” Participants addressed four major points during the roundtable, which are summarized below.

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Solving the U.S.-China Trade Deficit with Chinese IPOs

stock price

The U.S.-China trade deficit, which last year totaled $376 billion, has become the center of an ongoing trade war between the two nations.  A series of reciprocal and ratcheting tariffs have escalated these tensions, rapidly shifting which manufacturing sectors are profitable and which are not under the ever-unfolding tariff regime.  However, a September Initial Public Offering (IPO) by Chinese electric vehicle startup, NIO has shed light on one tactic that U.S. markets may employ to repatriate money from China in a way that is mutually beneficial to both countries.

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Happy Thanksgiving

Thanksgiving

The Dashboard Insights team wishes you a Happy Thanksgiving. We’re thankful for your continued support of our blog! We’ll be back to our regular posting next week. Have a great holiday!