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The waning U.S. dollar is hurting General Motors. The strength of the Canadian dollar and the exchange rate cost GM $300 million last year, according to Financial Times.
David Healy, an analyst at Burnham Securities, said, “The loonie has had quite a run. GM’s strategy would likely be to do some hedging and hope that everything settles down. But Mexico and the U.S. are looking more attractive than they were to build future product.”
GM is Canada’s largest manufacturer, measured by sales. However, more cars and trucks are exported than sold in Canada and the strengthening Canadian dollar means that the GM’s overhead in Canada has grown, according to Financial Times. And, this worries Canadian workers that GM may begin to start manufacturing elsewhere if the strength of the loonie continues to rise.
http://news.windingroad.com/plantsmanufacturing/the-rising-strength-of-the-canadian-dollar-hurting-g
m/
David Healy, an analyst at Burnham Securities, said, “The loonie has had quite a run. GM’s strategy would likely be to do some hedging and hope that everything settles down. But Mexico and the U.S. are looking more attractive than they were to build future product.”
GM is Canada’s largest manufacturer, measured by sales. However, more cars and trucks are exported than sold in Canada and the strengthening Canadian dollar means that the GM’s overhead in Canada has grown, according to Financial Times. And, this worries Canadian workers that GM may begin to start manufacturing elsewhere if the strength of the loonie continues to rise.
http://news.windingroad.com/plantsmanufacturing/the-rising-strength-of-the-canadian-dollar-hurting-g
m/
