GM targets $500 million in cost savings, plans job cuts in Europe image

General Motors aims to reduce costs by $500 million between 2013 and 2015 and plans to make further job cuts in Europe.

The move is part of GM’s plan to break even in Europe by mid-decade, the automaker said on Wednesday. “These are net fixed-cost reductions, not gross fixed-costs reductions” between 2013 and 2015, GM Vice Chairman Steve Girsky was quoted as saying by Reuters. Girsky is leading the restructuring at Opel and Vauxhall.

GM announced it would cut the shifts at its Opel plant in Eisenach, Germany, to two from three next year, according to an online presentation made after the automaker reported third-quarter earnings on Wednesday. The Detroit-based company posted a surprisingly strong quarterly profit and said it was targeting breaking even in Europe in mid-decade. The carmaker expects to lose as much as $1.8 billion in Europe this year.

GM said that by the end of this year it will have cut 2,600 jobs in Europe. So far this year, the top U.S. automaker has cut 2,300 from its Opel and Vauxhall operations. This scheduled job cuts for this year at Opel and Vauxhall will bring the total number of employees of GM’s two European brands to about 37,350.