GM’s Dan Akerson believes that the debt crisis in Europe is pretty serious

Article by Christian A., on November 23, 2011

The debt crisis in Europe is "more serious" than the housing bubble in 2008 that came before a global recession, CEO Dan Akerson of General Motors Co. said in an interview with the Detroit Economic Club on Tuesday. The company has not achieved an annual profit in the region for more than 10 years already. It has declined in New York trading since it withdrew its goal for break-even results in the region.

The company's operations in this region lost $292 million before interest and taxes during the quarter ending September 30, GM disclosed last week.

Specifically, it posted a 2.5 percent decline in third-quarter net income. Analysts have slashed their forecasts for the adjusted earnings of GM in the fourth quarter by 49 percent following the company's announcement last week that results for the period would be similar to the same period last year. Weakness in the European region was identified as a factor. Akerson stated that they were "dealt a hand" and they must "play it as best as we can."

When asked if some countries may eventually leave the eurozone, leading to a breakdown of the currency, Akerson said that he "wouldn't doubt it." He added that he would not be surprised to see a two-tier system. GM stock has declined 34 percent since its initial public offering last year. [source: Bloomberg]

Topics: gm, dan akerson

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 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