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GM Expects European Unit to Post Another Annual Loss

June 14 (Bloomberg) -- General Motors Corp., the world's largest automaker, said it expects to lose money in Europe again this year because of slow sales growth, after forecasting a profit in January.

The automaker repeated its total profit forecast for the year of $7 a share excluding some costs. Profit at the General Motors Acceptance Corp. finance unit is better than expected, the Detroit-based company said in a statement.

``Europe is tougher than we expected, especially on the revenue side,'' Chief Executive Officer Rick Wagoner told analysts in a conference call today. General Motors has had four straight annual losses in the region.

Wagoner said on June 2 that the goal to turn a profit in Europe this year was ``probably more of a stretch'' because of high costs and slower-than-expected sales. General Motors has said it will unveil a plan ``before the end of summer'' to cut expenses in Europe and return to profit in the region. The unit fell short of a break-even goal last year and has reported $3 billion in losses the past four years.

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Originally posted by The Oatman@Jun 16 2004, 12:27 AM
Those German unions are really something, from what I understand. Over there you hire a worker for life basically.
Or until the company goes bust!

I agree that there's a place for unions. I could understand unions representing folks in countries where people work in untenable situations, or even in the USA where we are rapidly creating a working poor class, which includes people like CNA's and low-level clerks who work 40 hours per work and still barely surpass the poverty threshold.

However, unions seem less justified in developed industries where union leverage is used to pry excessively lucrative contracts from companies.

There seems to be an imbalance.
 
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