Belfast Telegraph

Car giant ups prices in UK as it takes hit over sterling

by ben woods

Vauxhall owner General Motors (GM) has pushed up the cost of buying its vehicles in Britain and is eyeing a production cut in Europe as its grapples with the impact of the Brexit-hit pound.

The US motor giant more than doubled net income to $2.77bn (£2.3bn) in the third quarter, but suffered a $100m (£82.4m) blow from the slump in sterling.

The firm said it had to raise UK car prices by 2.5% on October 1 after the EU referendum result caused the British car industry to hit a "speed bump".

GM warned that if the pound continues to flag throughout the rest of this year then it could take an earnings hit of around $300m (£247m) in the fourth quarter.

It said its European arm was on course to break even before the Brexit vote, but may now struggle to meet its full-year profit targets for the region.

Chief financial officer Chuck Stevens told the Financial Times he would not rule out a possible capacity cut in Europe.

Belfast Telegraph