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GM's European losses double in 2012

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#1 ·
GM's European losses double in 2012
Automotive News
February 14, 2013

General Motors' losses doubled in Europe in 2012, weighing down the automaker's third-straight profitable year.

In Europe, losses for the full year widened to $1.8 billion from $747 million in 2011, GM said today. It was the 13th straight year of GM losses in Europe and reflected the rapid deterioration of vehicle demand and economic conditions in the region.

GM CFO Dan Ammann said the automaker is "not betting on" an uptick in European auto demand later this year and he expects conditions to worsen industrywide in the region. He reiterated the company's earlier forecast that GM would trim operating losses slightly in Europe in 2013.

Ammann said GM has no plans to provide additional funds to PSA/Peugeot-Citroen, its struggling partner in the region.

GM in October said it expected the full-year operating losses in Europe to total $1.5 billion to $1.8 billion, with "slightly better" results in 2013 and targeting break-even by mid-decade.

Full article at link.
 
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#6 ·
Must be time to sponsor a rugby team, or a cricket team. That will fix it. Only a half billion dollars plus to sponsor Manchester United soccer team to enhance dying sales and massive earnings losses in a struggling economy. God knows what the tall foreheads in the RenCen will come up with next. Roger Smith is alive and well as long as these people are in charge.
 
#7 ·
The 2012 losses are not the problem, it's what GM and Ford both intend to do to stem those losses.
Hanging on until the market comes good is not an option for Ford, it will cost them billions to
throw away production volume in Europe so I wonder what or how GM will respond to this.
 
#8 · (Edited)
Cease the bovine excrement. If a present "manager" doesn't do something TODAY, then they ought to be summarily dismissed. There is massive unused obsolescent capacity in Europe, just like in America in 2009. A lot of that capacity is never going to be used again, but the overpaid numbnuts who are GM "managers" will do anythng to kick the can down the road, and never have to make a decision to do something about it.

When forced by The Bankruptcy, GM and Ford layed off people and closed obsolescent capacity to get their NAFTA breakeven down to reasonable levels.

The formula is simple and painful, but the so-called "managers" resist facing up to the hard choices. So they promise a profit turnaround in two or three years, for which their is absolutely no reason to come to pass. They hope by then to have been moved elsewhere and let some other Joe Manager do it.
 
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