General Motors Co. has transferred the marketing of Chevrolet vehicles in Europe to its Middle Eastern and Asian unit. The General Motors International Operations unit will take on Europe as of January 1, according to the division's president, Tim Lee. The unit already sells the company's brands, Chevrolet included, outside central and western Europe as well as the Americas.
The company has abandoned its target of achieving breakeven this 2011 in Europe as the region's economic conditions deteriorate. The company manufactures its Vauxhall and Opel models in Europe. The GMIO unit was the company's only business outside North America to post a profit during the third quarter.
Meanwhile, GM in South America and Europe posted losses in the same period. Lee said that he is "very optimistic" that among Chevrolet, Vauxhall and Opel, they can find "good synergies" and improve their business conditions.
The company anticipates a "very strong" end to the year in the market of GMIO, Lee further stated. The unit also oversees the business of GM in Africa and former Soviet countries.
Lee disclosed that Europe "is a concern," adding that they still have to "solve the riddle in terms of being steadily profitable" in the region. He further stated that they are currently working on it from the side of Opel, Chevrolet and Vauxhall.
The company's global profit in 2011 has been affected by increasing costs associated with engineering and marketing new models. Lee added that the expenses have pulled them down slightly but that these are investments they’re making in the future. [source: Autonews]