As GM released its third quarter earnings, with great performances in its core North America market, it also discussed its money loosing European division, with Opel reporting an operating loss of $ 200 million (145 million euros).
The US company said its European unit is now on schedule, mulling a return to brake even – after 13 years of disastrous financial results. The European business’ operating loss from this quarter compares favorable to the one reported in the same period of last year – which was of almost 500 million dollars.
“GM Europe has managed to stabilize key metrics like volume and pricing in an extremely challenging market,” GM CEO Dan Akerson told analysts and reporters during the earnings conference call.
However, GM lost during the previous second quarter “only” $ 110 million. GM also said it would shift the profitable Russian market division to the European unit from the international operations. On the other hand, GM Chief Financial Officer Dan Ammann said the move won’t change the loss-stoping strategy – mulling a brake even scenario in the next year or so. Ammann also said GM will deal with “significant” restructuring costs for closing Opel’s facility in Bochum, Germany, by the end of 2014.