GM and Ford struggle to reduce structural costs

Volatility in OEM production is highly disruptive, says Fitch Ratings

At a recent seminar on the future of the US automotive Industry, Mark A. Oline, Fitch Ratings’ Managing Director Co-Head, U.S. Corporate Finance stated that despite Ford and GM’s respective liquidity, the ‘old way’ of enduring detrimental supplier issues in anticipation of their respective conclusions can no longer be sustained without incurring significant degrees of irrevocable negative impact, “uncertain cost structures create uncertain profitability and returns - we will see a smaller GM and Ford in the future”.