We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors' Opel Cuts Production in Germany Post Brexit
Read MoreHide Full Article
General Motors Company (GM - Free Report) recently announced that its subsidiary in Germany, Opel, is reducing working hours at two of its plants. The automaker took this decision in the view of the sluggish demand for Corsa and Insignia models post Britain's decision to exit the European Union.
General Motors stated that it will be reducing the work hours at the plants in Ruesselsheim and Eisenach this year. The exact number of days of condensed work hours depends on the sales of the Corsa and Insignia models in the U.K. – the biggest market for both these vehicles.
Brexit is crucial for all businesses in the European economy. It will impact General Motors’ financial performance in Europe if the value of pound remains at the current level for the rest of the year.
General Motors considers the drop in pound value to be the reason for the fall in sales of these vehicles. Since Jun 23, the pound has declined 11% against euro. Thus, the automaker deems it necessary to reduce its cost of operations in Europe by around $400 million to deal with the sudden turn of events.
Earlier, in Jul 2015, the automaker had announced plans to reduce work hours at the German plants due to declining sales stemming from a weak economy. Apart from Germany, General Motors has also decided to halt vehicle and engine production, and cut down engineering operations in Australia by 2017-end owing to the strengthening of the Australian dollar against the American dollar, high production costs, limited domestic market and stiff competition. This will result in the layoff of 2,900 employees. Due to this, cash payments for employee severance are expected to result in increased expenses through 2017.
General Motors currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Better-ranked automobile stocks include The Goodyear Tire & Rubber Company (GT - Free Report) , Ferrari N.V. (RACE - Free Report) and Gentex Corp. (GNTX - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors' Opel Cuts Production in Germany Post Brexit
General Motors Company (GM - Free Report) recently announced that its subsidiary in Germany, Opel, is reducing working hours at two of its plants. The automaker took this decision in the view of the sluggish demand for Corsa and Insignia models post Britain's decision to exit the European Union.
General Motors stated that it will be reducing the work hours at the plants in Ruesselsheim and Eisenach this year. The exact number of days of condensed work hours depends on the sales of the Corsa and Insignia models in the U.K. – the biggest market for both these vehicles.
Brexit is crucial for all businesses in the European economy. It will impact General Motors’ financial performance in Europe if the value of pound remains at the current level for the rest of the year.
General Motors considers the drop in pound value to be the reason for the fall in sales of these vehicles. Since Jun 23, the pound has declined 11% against euro. Thus, the automaker deems it necessary to reduce its cost of operations in Europe by around $400 million to deal with the sudden turn of events.
Earlier, in Jul 2015, the automaker had announced plans to reduce work hours at the German plants due to declining sales stemming from a weak economy. Apart from Germany, General Motors has also decided to halt vehicle and engine production, and cut down engineering operations in Australia by 2017-end owing to the strengthening of the Australian dollar against the American dollar, high production costs, limited domestic market and stiff competition. This will result in the layoff of 2,900 employees. Due to this, cash payments for employee severance are expected to result in increased expenses through 2017.
GENERAL MOTORS Price
GENERAL MOTORS Price | GENERAL MOTORS Quote
General Motors currently carries a Zacks Rank #3 (Hold).
Stocks that Warrant a Look
Better-ranked automobile stocks include The Goodyear Tire & Rubber Company (GT - Free Report) , Ferrari N.V. (RACE - Free Report) and Gentex Corp. (GNTX - Free Report) , each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>