GM is expected to report second-quarter profit much lower than the $2.5 billion in the same period last year.
Analysts expect the company to report increased sales in North America, but a huge loss in Europe, due to the debt crisis. In the first quarter GM lost $256 million before taxes and interest in Europe and more than $14 billion over the last 12 years.
In June GM removed Karl-Friedrich Stracke as president of GM Europe, replacing him with Vice Chairman Steve Girsky, and named Thomas Sedran Opel’s interim chairman and CEO, hoping that these changes will be able to lead the company towards profit in Europe.
Last week rival Ford Motor reported second-quarter profit of $1 billion, down 58%, while Chrysler announced a 2Q profit of $436 million. Fiat, Chrysler’s parent company, declared that it would have seen losses of more than $302 million in the second quarter if it wasn’t for Chrysler’s help.
In July GM’s market share decreased to 17.4%, from 20.3% in the same period last year. From January to July, the company’s market share accounted for 18%, compared to 20% last year. On Wednesday, August 1st, GM’s stock closed at $19.66, down 5 cents.