American Crisis

The recovery of profitability in the balance sheets of the company will be one more arduous task and probably demands a long time. It is that there are multiple factors that undermine the expected future benefits from the company. Several factors hitting the future prospects of GM are linked to the expected demand. It is a fact that the crisis will involve a shift toward the inside of the curve of American consumer demand. Our representative American family (which could well be the Simpsons), where long ago could not bear having the same vehicle for more than five years, now deemed that it is not so bad after all. And up to the affective factor can be a good excuse to prolong its use for longer. On the vision of GM as a brand, will have to see how the bankruptcy impacts on consumers, since it may mean that from now on it is more not as well view and lost jobs between the preferences of the Americans. Demand for vehicles in the U.S.

not only will shrink but could also observe a change in its composition with greater participation by more economic segments. The impact of the crisis on family wealth can be decisive in this type of consumption. If you would like to know more about Marianna Tessell, then click here. With less prolonged effect on time, also market automotive world will be located well below pre volumes crisis. Another negative news for the expected demand for GM cars, is linked to the potential loss of market share that GM will experience in the hands of its competitors both in the U.S. and globally. The crisis which the company removed reaction capacity (which adds to that GM is behind in the development of the new generation of vehicles).

Already, automotive like Toyota, Honda, Nissan and Hyundai have chopped in tip in the new context of the international automotive market and advance on the giant U.S. market share. Fiat will strategically reset level world after the takeover of Chrysler, while Ford (NYSE:F), the least affected of the three giants of Detroit already plans to increase its production in an aggressive action. The bankruptcy of General Motors, in principle it seems one fact away from the Latin American reality, but clearly this is not the case. The announcement of the closure of 14 plants by the company in various U.S. States, generated a principle of uneasiness in the countries of the region, where the company has an important part of its operations. All Latin American news media made eco of the bankruptcy of GM but focused on how this event affected the giant investments in their respective countries. They were thus breathing relieved in Argentina, Brazil, Chile, Peru and, in particular, Mexico, upon receiving confirmation that everything remains the same for such lands. Risks or opportunities? All bankruptcy generates fear. But in the crisis, emerging opportunities and one of the countries that more beneficiaries could see is Mexico. The Mexican economy has broad benefits for the company analyze the possibility of increasing their operations in that country. This decision could involve risks that production would increase in a country that is still not adequately stable in macroeconomic terms. This instability makes that not you may estimate properly returns from investments in the country. The GM crisis will drop him well to Mexico or you must comply with that business as usual?