US stocks indexes are breaking records for daily plunges with worrying regularity. And the wider economy is in a deep hole. But Andrew Snyder says the situation in Europe is even worse. The eurozone economy is heading towards a recession. And politics and bureaucracy are getting in the way of a coordinated response from member states. Andrew says it’s time to reduce your portfolio’s exposure to anything European…

If you think the economy is slowing here in the United States, do not even think about looking to Europe. Thanks to already-high unemployment rates, an extremely expensive (and lazy) workforce, and a conglomeration of central banks too small to act independently, yet too large to get anything done, the continent is in some real trouble.

Need proof? Ask General Motors (NYSE:GM) this morning. It just announced it would be halting a huge portion of its European production. It is a sign of a major economic slowdown.

General Motor’s largest European brand, Opel, reports it will close one if manufacturing plants next week for a period of at least three weeks. Another one of its plants closed last week and will not reopen for another week. With nothing to sell, there is nothing to make.

The plant closures come as GM anticipates selling 40,000 less cars through the Opel division this year. With news like that, it is no wonder the company is reeling in pain and share price is in single-digit territory. Fortunately, the night is darkest just before the dawn.

Of course, American automakers are not the only companies hurting thanks to a major European downturn. Last week, I had the opportunity to chat with some of Harley Davidson’s (NYSE:HOG) operations managers.

As we toured the company’s assembly lines, the proportion of bikes headed overseas was staggering. With a slowdown in America already slowing bike sales, Harley is hoping foreign sales continue to rise.

With the news we are seeing out of Europe this week and the strengthening of the American dollar, it is apparent those hopes will be squelched. It is not good news for the nation’s premier motorcycle manufacturer or for any other exporters.

The American economy is slowing, but the problems are much worse in less financially stable countries. Take the time to lower your portfolio’s European exposure. There are foreign markets worth investing in, but Europe is not one of them.

Source: European Turmoil: General Motors (GM) shuts down production