/ 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
gm europe loses plan


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!

Mercedes sticking with Brembo despite failure
Mercedes sticking with Brembo despite failureJul.25 (GMM/Inautonews.com) Mercedes will continue to work with brake supplier Brembo, despite Lewis Hamilton's disc failure in ...
Lauda rubbishes Vettel-to-Mercedes rumour
Lauda rubbishes Vettel-to-Mercedes rumourJul.25 (GMM/Inautonews.com) With the summer sun baking in Budapest, 'silly season' has well and truly arrived in the F1 ...
PREVIEW – Hungarian GP 2014
PREVIEW – Hungarian GP 2014“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow ...
Indian showroom owner prepares a manlier Dacia Duster
Indian showroom owner prepares a manlier Dacia DusterA hotter version of the Dacia Duster has seen daylight first in an Indian car showroom and it managed to attract quite a lot of ...
[VIDEO] Subaru WRX STI gets Gymkhana style promo
[VIDEO] Subaru WRX STI gets Gymkhana style promoA new promotional video for the Subaru WRX STI is showing the performance sedan from a Gymkhana “point of view”. All petrol ...
2015 Hyundai Tucson introduced
2015 Hyundai Tucson introducedHyundai dealerships across the United States are getting ready to receive the 2015 Tucson, as the model in question has been ...
First Ferrari LaFerrari spotted in China
First Ferrari LaFerrari spotted in ChinaThe first unit of the impressive Ferrari LaFerrari in China has been recently spotted on the road where it “made” a new ...
[Video] Hot Wheels brings Darth Vader’s car to life
[Video] Hot Wheels brings Darth Vader’s car to lifeThere’s no ending to the marketing opportunities provided by possibly the universe’s greatest villain and most evil empire. ...
[VIDEO] Dodge Challenger SRT Hellcat – driver’s POV on the road
[VIDEO] Dodge Challenger SRT Hellcat – driver’s POV on the roadA new video with the recently unveiled Dodge Challenger SRT Hellcat is showing the muscle car from a driver’s point of view ...
Tesla Model S gets crashed in China
Tesla Model S gets crashed in ChinaAnother Tesla Model S has been involved in a crash in China and judging by the images posted below, the servicing bill will be ...
Audi confirms SQ7 for 2016
Audi confirms SQ7 for 2016The German based automaker Audi has recently confirmed plans to introduce an SQ7 version of the updated Q7 over the next couple ...
GM recalls – business opportunities for many US dealerships
GM recalls – business opportunities for many US dealershipsAlthough a deadly ignition switch scandal, followed by a hurricane of recalls that led to 29 million cars in need of servicing, ...
Ford F-35 Lightning II Edition Mustang GT introduced
Ford F-35 Lightning II Edition Mustang GT introducedThe North American based automaker Ford has officially pulled the wraps off its newest creation, the new F-35 Lightning II ...
Mercedes-AMG details new 4.0L V8
Mercedes-AMG details new 4.0L V8Mercedes-AMG has released the first official details on the brand new 4.0 liter V8 engine which will be found under the hood of ...
Bentley tones down sales increases for the year
Bentley tones down sales increases for the yearAfter previously aggressively forecasting record sales for 2014, Bentley’s CEO Wolfgang Duerheimer said the company expects the ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

dacia duster tuning india 1
2015-hyundai-tucson 1
Comic-Con-Toys
tesla model s crash china 2014 1
Ford F-35 Lightning II Edition Mustang GT 1
mercedes-amg 4.0l v8 twin turbo 1
Honda NSX 01-2
ferrari f430 spider crash geneva kid 1
2015 mercedes-benz c-class cabrio interior 2
nissan note nismo 1
2015 ford falcon xr6 xr8 1
Mercedes-Benz-AMG-GT-1

More automotive from inautonews
“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow corners. In terms of aerodynamics, the problem for the teams is the same as that faced in Monaco: namely to maximize performance at the high-down force of the spectrum” Pat ...
read more
Inautonews Editors Section
PREVIEW – Hungarian GP 2014
PREVIEW – Hungarian GP 2014“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow corners. In terms of ...
Review – German GP 2014
Review – German GP 2014Taking Rosberg’s easy win out of the picture, the German GP was truly spectacular, full of wheel-to-wheel racing, some of the overtakes backfiring ...
Britain and Germany go to war
Britain and Germany go to war1995, the German Grand Prix at the old Hockenheimring. Damon Hill leads at the end of lap one ahead of Schumacher but loses the car at the first ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety General Motors – 6 new recalls announcedGeneral Motors is continuing to announce new recalls with six separate campaigns which are covering ... Recall roundup: Mercedes-Benz SLK and SL for Takata airbagsThe German based automaker Mercedes-Benz has recently issued a recall for the SLK and for the SL ...
Safety Section