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

It is quite common to revive classic cars if you have a lot of extra money. Models like the Jaguar XKSS and Aston Martin’s DB4 GT have been upgraded to...
by - August 21, 2017
Famous designer of certain Ferrari vehicles like the Enzo Ferrari and the P4/5, Ken Okuyama has revealed another one of his designs at the 2017 Pebble Beach Concours over the...
by - August 21, 2017
The current generation of the BMW M3 (F80) sedan isn’t just sporty and luxurious in terms of looks, but also in terms of performance. Because of its athletic appeal, the...
by - August 21, 2017
A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 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