The challenges were abundantly clear in the past few days, as Ford Motor (F) andGeneral Motors (GM) talked about their struggles in South America–specifically Argentina and Venezuela. Last year, inflation in Venezuela hit a blistering 56 percent, outpacing every economy in the world, while prices surged 28 percent in Argentina. Ford and GM have manufacturing facilities in both countries but also import quite a few vehicles. Forced to decide between raising prices to keep up with inflation and accepting a lower return, U.S. automakers have done a little bit of both (and probably hustled to lock in exchange rates before they stretch further). More...
No comments:
Post a Comment