Will General Motors be affected by the coming Trade War

Discussion in 'Stocks' started by Landonfisher, Mar 23, 2018.

  1. Finstead indicated that in 2017, General Motors recorded adjusted earnings of $6.62 per share, up 8.2% from that of prior-year quarter. Moreover, this came in higher than the expected 2017 adjusted earnings per share of $6.00 to $6.50. For 2018, the company projects robust earnings, mainly on the back of strength in North America, China and South America, growth in GM Financial segment, and continued cost efficiencies.

    Good news for the General Motors.

    However, Finstead also showed that General Motors has been forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects. General Motors decided to stop vehicle and engine production, and cut down engineering operations in Australia by 2017 end due to the strength of the Australian dollar against the American dollar, high production costs, limited domestic market and stiff competition.

    Even though General Motors lost Australia, but it still has other good markets to generate earnings, one of them is China.

    But, now the trade war will begin soon, it seems, from China perspective, that Boeing company and vehicle manufactures, like Tesla and GM, will be the main targets.

    How do you think?
     
    dealmaker and projomni like this.
  2. projomni

    projomni

    The answer is obviously yes. But I think the market may be over reacting now...