Over the last few months, the dollar index has been closing at record highs following the 2009 recession. As the operations manager at General Motors (GM), it is important that I evaluate how the rising strength of the US dollar (USD) will effect GM’s numerous business operations both domestically and overseas. In recent years, our company has faced bankruptcy and net losses. While this has been primality due to the state of the economy, GM has recently been able to turn their operations around and are now starting to turn a profit. However, GM Europe’s sales are still not as strong as we would hope despite the improving economy. After looking at GM’s annual report from 2014 as well as the historical prices of raw materials and the EUR/USD exchange rate (Figure 1), I have concluded that there are some changes we should both anticipate and put in place in order to improve GM’s income.
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