The mutual duties between Washington and Beijing raised the prices of raw materials for global automotive industry.
The two largest American automaker Ford Motor and General Motors are preparing for a possible economic crisis. This was stated by the representatives of the companies, as the ongoing trade war between the US and China fuelled fears of a global recession, reported the online edition of the Chronicle.info with reference to liga.net.
The mutual duties increased the price of raw materials for global automotive industry, which is already under the impact of weak demand in China and the United States.
According to financial Director of Ford North American Matt fields, Ford Motor has a cash buffer of $20 billion for a possible economic downturn.
General Motors has $18 billion to the potential payout of dividends for two years, told the conference the head of the financial Department of the company Divya Suryadevara.
GM is considering strategies to save money in case of an economic crisis, among which is the postponement of nonessential capital expenditures and consideration of the possibility of transition to release of cheaper vehicles.
Ford, in turn, said that “proactive” evaluates future steps in collaborating with economists to determine the severity of a possible recession.