Opel Reports a Loss of $110M From $394M in 2012 image

Opel reported an adjusted loss before earnings and taxes of $110 million compared with $394 million in 2012.

The automaker’s international businesses, including India, China and other markets, reached an adjusted EBIT down 64% to 228 million from $627 million in 2012. The results were affected by declined in sales in markets such as India and by the pressure put on GM by the weak yen in Australian and ASEAN markets.

Last month Opel said it will stop making Astra vehicles in Ruesselsheim, Germany, in 2015, not 2016 as the company previously said. Opel will start to assembly Zafira vehicles in Ruesselsheim after the automaker announced many times that they will shut down their Bochum plant, as the company failed to reach an agreement with the workers.

During the first half of the year Opel’s western European auto market share fell the most in the past 10 years, as the region continues to be affected by the financial crisis. The automaker’s situation is quite dramatic as GM’s Opel is entirely depended on the sluggish European market and new registrations in Germany, its home market, have slid 8.1% in the first half of the year.

“Opel/Vauxhall consolidates its position as third-largest car brand in Europe in the first half of 2013 and stabilized its market share. This is a clear proof for the success of our ongoing model offensive—in a very difficult market environment,” said Opel spokesman Ulrich Weber, on the registration data.

Source: Bloomberg