Skip to comments.GM profits slip 41% as European struggles take their toll
Posted on 08/02/2012 9:09:06 AM PDT by Beave Meister
Business General Motors
GM profits slip 41% as European struggles take their toll
America's largest car firm made $1.5bn in the second quarter of 2012, with European division reporting operating loss of $361m
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Dominic Rushe guardian.co.uk, Thursday 2 August 2012 09.25 EDT
General Motors GM's CEO Dan Akerson said: 'We have more work to do to offset the headwinds we face.' Photograph: Jeff Kowalsky/EPA
General Motors' profits fell 41% in the second quarter as troubles in Europe undercut strong sales in North America.
America's largest automaker made $1.5bn in the second quarter of 2012, compared with $2.5bn for the same period last year. Revenue fell to $37.6bn from $39.4bn in the second quarter of 2011. The results exceeded analysts' estimates, but further underlined Europe's drag on the US economy.
"Our results in North America were solid, but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," said GM chairman and CEO Dan Akerson. "Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade."
GM's European division reported an operating loss of $361m, compared with an operating profit of $102m a year ago. GM is attempting to restructure the unit and recently replaced several of its top executives in Europe. The company is planning to close at least one plant in Europe by 2016, but Dan Ammann, GM's chief financial officer, said there were no immediate plans to announce more job cuts or factory closings in Europe.
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Personally I couldn’t care less what happens to Government Motors!
I care about when/if they pay back the bailout money. Then let's see what they report as profits. (hint, there wouldn't be any)
Well, I can’t say I’ve ever seen an Opel Ampera (= Chevy Volt) on the road. Or off the road. Or anywhere. Oh, at a sticker price of EUR 44,000 (US$ 53,000) and no subsidies I am not really surprised. The GM/Opel/Vauxhall management must be on hard drugs to think they can sell their 3rd tier cars at 1st tier prices. If they ever want to improve their market share in Europe they need to stick to the sub-$20k class. And kick the sh!t out of the union pukes.
Europe’s fault is the new “Bush’s fault”