General Motors’ lossed doubled in Europe last year, shrinking the automaker’s third-consecutive annual profit.
GM’s net income was $4.86 billion last year, down from a record $7.59 billion in 2011. Operating income in 2012, before any one-time items, was $7.86 billion, down from $8.30 billion in 2011.
In Europe, losses for the entire 2012 doubled to $1.8 billion from $747 million in 2011, GM announced today. It marks the 13th straight year of GM losses in Europe and reflects the rapid deterioration of vehicle demand and economic conditions in the region.
GM’s Chief Financial Officer Dan Ammann was quoted as saying by Automotive News Europe that the automaker is “not betting on” a recovery in European auto demand later this year and he expects conditions to worsen industrywide in the region. He added that the company’s earlier forecast that GM would trim operating losses slightly in Europe in 2013 remains valid.
Ammann also said GM has no plans to provide additional funds to PSA Peugeot-Citroen, its struggling alliance partner in the region.
GM posted a global net profit of $892 million for the fourth quarter, nearly double the year-earlier figure. In Europe, GM’s fourth-quarter operating losses rose to $699 million from $562 million a year earlier.