June 27, 2016 — Automotive stocks did not escape the carnage Friday as a reported $2.1 trillion was wiped off the books across the world’s stock exchanges following Thursday’s stunning vote by Great Britain to exit the European Union. In the U.S., the Dow Jones plunged 611 points.
The selloff in automotive was across the board. On the retail side, two companies with significant holdings in Great Britain, the Penske Automotive Group and Group 1 Automotive, saw the most damage losing 10.3% and 6.4% respectively. Although Friday hurt, each of the public dealer groups were still above their 52 week lows.
Despite Sergio Marchionne’s claims that Brexit would not have a significant effect on Fiat Chrysler, its stock dropped 12.3% on Friday, nearly double the decline of every other automaker.
Ford Motor Company’s stock price dropped 6.6% while General Motors’ declined 4.9%. Toyota dropped 5.5% and Honda dropped 4.3%.
Meanwhile, prior to the U.S. market’s open, it appears Monday will be another rough ride as the British pound continues to plummet against other currencies. Already this morning in Europe, both RBS and Barclays banks stopped trading their shares for a brief moment as prices plunged more than 10%.