General Motors Europe

And this impact would occur both in a direct and indirect. Is beyond the potential job losses and bankruptcies of suppliers that can generate, this plant would return to the economic context of uncertainty causing a direct impact on the recovery of the U.S. economy. The potential GM bankruptcy would also have its negative impact on Europe.

A possible bankruptcy of General Motors that could lead to the liquidation of the car manufacturers Opel and Vauxhall, generate an impact of 19. 000 million euros in the continent during the period 2009-2011, according to estimates made by General Motors Europe itself. Germany would be the country most affected by this situation because there are established Opel headquarters as well as most of their staff and their factories. In Mexico, also feel the impact. There, GM generates 10. 000 direct jobs and 40. 000 indirect employment.

While concerned about the situation of the company, on the other hand it is known that the Mexican subsidiary is more profitable subsidiaries, given their low production costs (reduced further in recent times by the weakening of the peso). GM account in Mexico with four industrial complexes, corporate buildings, a center for testing and other engineering. The negative impact for Mexico would be primarily short term by any suspension of payments that would arise from the company, and would affect the Mexican autoparts. Even in Mexico, the crisis of GM in particular, and the U.S. auto sector in general, could have positive effects by causing a relocation of plants Mexican territory. However, this potential short-term impact on the Mexican auto parts can result in serious consequences for many of them as long as it does not have sufficient financial strength to withstand the cessation of payments from GM. a Given the high costs could lead to a potential bankruptcy of GM, it is clear that the company will not be alone in this struggle for survival in times of troubled waters. The contribution of the United States government will be on the agenda if GM needed. Will the last effort the U.S. government should do to start the economic recovery without major obstacles? Latinforme. com is the main source of financial information and independent opinion on American and global markets from a Latin American perspective. From our offices in Buenos Aires, Argentina, I approached the latest news and alerts to help you make gains regardless of the direction taken by the market.