/ General Motors, Industry, News, Opel, Vauxhall / Analyst – GM Europe challenging for new CEO

Analyst – GM Europe challenging for new CEO

Linked In Share
Analyst – GM Europe challenging for new CEO

As incoming CEO Mary Barra prepares to take the reins at General Motors, her biggest challenge will be to accelerate the turnaround of the automaker’s European business.

Chronic loss-maker General Motors Europe will finally start making money next year thanks to cost cutting and restructuring, but sales will remain stagnant through the rest of the decade.

A new analyst report from Morgan Stanley estimates that European business represents a negative value of $11.5 billion on the company’s balance sheet. Morgan Stanley has also raised its estimate of the value of GM Europe by $4.5 billion, although that’s not as good as it sounds. The investment bank now reckons the company, comprising mainly German-based Opel and British brand Vauxhall, is worth a negative $11.5 billion, compared with its previous estimate of a negative $16 billion.

“GM Europe is a source of near-term earnings momentum, yet still a source of long-term risk,” Morgan Stanley’s Adam Jonas wrote in a research note. “We estimate GM Europe will generate $0.4 billion of combined profit over the next four years. We have improved our forecast for losses at GME further to $260 million in 2014 versus our estimate of $837 million in 2013, with a positive margin of one per cent for 2015 and 2016,” Jonas said in the report.

The report comes about a week before Barra is to succeed CEO Dan Akerson, who is retiring to help his wife, Karin, fight cancer.

When GM announced its leadership changes last month, the automaker said that Vice Chairman Steve Girsky would relinquish his role as the chairman of the automaker’s European turnaround efforts. But GM Europe President Karl-Thomas Neumann will stay in place.

The company announced plans last month to shrink its partnership with Peugeot Citroën and sell off its 7% stake in the French automaker after Peugeot tightened ties with Chinese automaker Dongfeng Motor.

GM also decided to withdraw Chevrolet from Europe to place more firepower behind its Germany-based Opel brand.

by Aurel Niculescu (my Google+) - Wednesday, January 8th, 2014 - filed under General Motors, Industry, News, Opel, Vauxhall. Image credit: .
Linked In Share
Related Articles


Discuss: Analyst – GM Europe challenging for new CEO

Leave a Reply


















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Nervous teams to sit out Saturday practice
Nervous teams to sit out Saturday practiceMar.13 (GMM/Inautonews.com) Television and trackside viewers face a questionable spectacle on Saturday morning at Albert ...
US: study sees rear camera better than sensors when backing
US: study sees rear camera better than sensors when backingA new study released by the Insurance Institute for Highway Safety, has found that rear camera reduce blind spots by up to 90% ...
UK holds a record number of vehicles on the road
UK holds a record number of vehicles on the roadAccording to the Society of Motor Manufacturers and Traders, while new car sales advanced to reach new heights, so did the number ...
Hyundai to make big trucks in China
Hyundai to make big trucks in ChinaThe South Korean automaker announced in a statement that it intends to join rival truck makers Daimler and Volvo AB in locally ...
GM offers $500 to owners of recalled cars that want a new one
GM offers $500 to owners of recalled cars that want a new oneThe No.1 US automaker is feeling the pressure coming from the ignition switch recall problems and decided to provide loaner ...
Volkswagen aims for 10 million sold cars in 2014
Volkswagen aims for 10 million sold cars in 2014As the Volkswagen Group last year increased its sales by 4.9 % to reach record 9.73 million vehicles delivered, it now expects ...
US: GM and Mazda make the best family vehicles
US: GM and Mazda make the best family vehiclesUS News & World Report says that with the steady rising pace of sales and the introduction of further new models, families ...
GM reveals it waited calling in a model even after it found about hazard in 2001
GM reveals it waited calling in a model even after it found about hazard in 2001General Motors has revealed in fillings that although its engineers knew about four fatalities in crashes involving the Saturn ...
UK: Bollore Group to invest in electric charging stations in London
UK: Bollore Group to invest in electric charging stations in LondonThe French Bollore Group announced in a press conference its IER unit that manages Paris’s Autolib auto-sharing program would ...
Ferrari FF by Oakley Design gets crashed in England
Ferrari FF by Oakley Design gets crashed in EnglandA modified Ferrari FF, signed by Oakley Design, has recently met its end in England, after its driver managed to crash ...
Mercedes-Benz B-Class facelift spied
Mercedes-Benz B-Class facelift spiedOur spy photographers have managed to capture a facelifted version of the B-Class on camera, while it was being tested, near the ...
Report: PSA state backed candidate for chairman also supported by Peugeot family
Report: PSA state backed candidate for chairman also supported by Peugeot familyAccording to a report coming from French newspaper Le Figaro, Louis Gallois, a French civil servant could most likely become ...
[VIDEO] Opel Astra Extreme gets new promo
[VIDEO] Opel Astra Extreme gets new promoOpel has released a new promotional video with the impressive Astra Extreme, which is showing the model in action, on the ...
Tesla hires Renault-Nissan’s chief spokesperson
Tesla hires Renault-Nissan’s chief spokespersonTesla Motors, the electric car maker that is betting its success on expansion to China, Europe and building a huge battery plant, ...
Seat Leon sporty body kit introduced in the UK
Seat Leon sporty body kit introduced in the UKSeat has recently introduced a sporty body kit for the new Leon generation in the United Kingdom, which is available for the ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Spy-Shots of Cars
Seat Leon sporty body kit 1
2014 corvette stingray crash 2
ferrari 458 italia 1
Mercedes-Benz A45 AMG by RevoZport and Mulgari 1
Citroen DS3 Benefit 1
Spied-Land Rover Baby Discovery RS Mule 001
Spied-Jaguar XE 001
2011-mclaren-mp4-12c-crash taiwan 1
Isuzu-D-Max-X-Runner-special edition 1
ferrari 458 speciale crash germany 1
koenigsegg_one1_dubai_police.ekhcm0ijeu0c4ccggk4kwck0o.a5fuq7lrqzkgc0ccw4ss08gso.th

More automotive from inautonews
A new study released by the Insurance Institute for Highway Safety, has found that rear camera reduce blind spots by up to 90% and are better overall than the old fashioned parking sensors at aiding the driver reverse. The IIHS, an group that is industry funded and aims to help automakers improve ...
read more
Inautonews Editors Section
Test Drive: Renault Captur 0.9 – TCe 90 – fast review
Test Drive: Renault Captur 0.9 – TCe 90 – fast review After we’ve tested almost all Renault Captur models, we decided to check out the 3-cylinder engine - 898 cc 66kw (90 hp) model. Why we’ve ...
Test Drive Fiat 500L Living – Review
Test Drive Fiat 500L Living – Review Who ever thought in 2007, when Fiat unveiled the new 500 citycar that the Italian automaker will ever build a seven-seater 500 model. Clearly, ...
Test Drive Fiat 500L Trekking – Review
Test Drive Fiat 500L Trekking – Review Fiat had a great success back in the 60’s with the 500 model. It was cheap, practical and equipped with a 479 cmc petrol engine – that’s why ...

Editors Section
Inautonews Editors Section
2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video] 2009 safest cars Euro NCAP

Latest in Safety US: study sees rear camera better than sensors when backingA new study released by the Insurance Institute for Highway Safety, has found that rear camera ... US senate panel to hold GM hearing in AprilWell, Mary Barra, the industry’s first female CEO seems to have its hands full these days, as ...
Safety Section