With U.S. auto sales tumbling after three record years, General Motors will lay off 2,000 hourly employees at two assembly plants, one in Michigan, the other in Ohio, early next year. That follows a series of temporary plant closings by GM and rival Ford Motor Co.
The domestic new vehicle market slid about 8% in October, the latest in a series of downturns that both Toyota and Nissan this past week cited as major contributors to sharp declines in quarterly operating income.
Despite slumping demand, mounting inventories and a surge in costly incentives the U.S. market is still expected to hit an all-time record of somewhere in the mid-17 million range for all of 2016. But what might follow, if there isn’t a market rebound could pose an immediate challenge for Donald Trump, especially if turmoil following the divisive presidential campaign leads to a broader economic downturn. (more…)