GM Europe posts 3Q loss of $559 million, much wider than 2Q loss

Article by Christian A., on November 11, 2010

In the third quarter, General Motors Co.'s European operations had a wider loss compared to the second quarter – putting a damper on the positive results anticipated for its initial public offering next week.

Before interest and taxes, GM Europe's third-quarter loss was $559 million, more than double the $160 million in the quarter ended June 30.

GM Europe posted losses of $1.2 billion on an Ebit basis in three quarters this year. Due to the quickening recovery in North America, GM posted a net income of $1.96 billion on revenues of $34.06 billion in the third-quarter.

For the same period in 2009, GM reported a $1.2 billion loss after undertaking a U.S.-funded overhaul in bankruptcy court. According to GM Chief Financial Officer Chris Liddell, the European loss originates largely from a normal industrywide reduction in volumes during the summer period.

The loss was limited due to the launch of the new Opel/Vauxhall Meriva and an improvement in Chevrolet sales in Europe, as well as favorable foreign exchange rates.

GM CEO Dan Akerson said that the company realizes that there’s “much more work to do.” He promises that the company will be “vigilant” in cutting costs and boosting marketing. [via autonews - sub. required]

Topics: gm, profit, europe

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries