At Bloomberg's Dealmakers Summit in New York, General Motors Co. CEO Dan Akerson announced that it has become profitable in all its regional units. He said that in its initial public offering last year, the company’s global presence had played a big factor.
He said that it has become clear that GM made the right decision in walking away from a deal to sell its European Opel unit in 2009. Akerson explained that it was a “bad deal” to give Europe away.
Since 1999, GM’s losses in Europe have totaled to $14.5 billion. In 2009, GM had agreed to sell 55% of Adam Opel GmbH to Magna International Inc. and partner OAO Sberbank.
At the Frankfurt Motor Show, Nick Reilly, president of GM Europe, told reporters that what GM aims to achieve in Europe is to be “profitable by just better than break-even before restructuring charges.”
Reilly said that there won’t be restructuring charges in 2012 and that the company will receive the “full 12 month benefit of the restructuring” that has been done. Akerson attended the gathering along with JPMorgan Chase & Co. Vice Chairman James Lee. JPMorgan, Morgan Stanley, Bank of America Corp. and Citigroup Inc. led the GM IPO.