The news of GM's cutting of nonessential spending worldwide is a story that will perhaps play out over and over again as disruption to supply chains from the Japanese earthquake and tsunami becomes clear.
From the WSJ:
"GM has been the most vocal of Detroit's auto makers in voicing concerns about the magnitude of potential supply chain troubles in the wake of Japan's disaster."
Terlep, Sharon, 2011. GM halts 'nonessential' spending globally due to japan crisis. The Wall Street Journal, Mar. 19.
In my view, this adds huge uncertainties to the American economic recovery.
This article outlines plans to shut plants in Louisiana, Europe, and S. Korea because of the lack of parts.
No comments:
Post a Comment