Currently reading: Opel slumps despite GM's profits
Big losses at Opel-Vauxhall fail to prevent GM's overall business from recording record profits
Autocar
News
1 min read
16 February 2012

General Motors’ European arm lost $747 million (£476 million) in 2011, but it was not enough to prevent the Detroit-based firm from posting record full-year profits.

GM’s overall profit for 2011, its first full year of trading since emerging from bankruptcy, stood at $7.6 billion (£4.83bn). Its previous profits record was in 1997, when it made $6.7bn (£4.3bn).

The full-year loss for GM’s European arm, which includes Opel-Vauxhall, was an improvement from the near $2bn (£1.3bn) that it lost in 2010, but fourth quarter losses were $562m (£358m) alone due to the financial insecurity the continent is currently engulfed in.

GM has persistently stated it has no desire to sell Opel-Vauxhall and is committed to fixing it, but it has not ruled out making further cuts. Dan Ammann, GM’s financial chief, said that the restructuring of Opel’s business over the past two years “has not gone far enough and has not reached break even in the environment we're in today”.

He confirmed GM was in talks with unions regarding further cuts, but did not comment on the future of plants including Britain's Ellesmere Port. GM is “looking at all elements of the business," he said, "to make sure that we make the changes we need to make to get the business profitable."

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Comments
25

507

16 February 2012

What a bombshell - difficult to sell a sinking ship!

16 February 2012

If Ellesmere Port is closed, it will only be because it is the easiest target in the Vauxhall / Opel empire to close.

It will be a case of company politics, rather than anything to do with productivity, quality, or costs, which will be a crying shame!

16 February 2012

My info reveals that the actual losses were S, America nd UK - Opel supposedly broke even. This will spell the end of the Vauxhall name finally. Which means that at least Clarkson will have one less car to take the piss out of. On a serious note though - those at the Vauxhall plant should at least sit tight till they are made redundent and get the package that goes with it. If Macarroni face is chucking bonuses to those in the States then he better have a good excuse not to pay compensation/redundency packages to the guys in London. He wont care about the S american plant - he will just close it without fanfare

507

16 February 2012

People I know at both Bochum and Eisenach claim that both plants are running at tremendous losses.

16 February 2012

[quote 507]People I know at both Bochum and Eisenach claim that both plants are running at tremendous losses.[/quote]

You don't work for News International by any chance ?

16 February 2012

[quote petrolheadinrussia] If Macarroni face is chucking bonuses to those in the States then he better have a good excuse not to pay compensation/redundency packages to the guys in London. He wont care about the S american plant - he will just close it without fanfare[/quote]

What??

16 February 2012

[quote 507]What a bombshell - difficult to sell a sinking ship![/quote]

You forgot to read the bit "GM has persistently stated it has no desire to sell Opel-Vauxhall and is committed to fixing it".

Ford, Fiat, Renault and Nissan have all been in bad postions too and they're still going.

16 February 2012

Aside from the Opel/Vauxhall figures, the $7.6 billion (£4.83bn) profit is a pretty epic turnaround from 2 years ago. Amazing really considering they were possibly a sunken ship.

16 February 2012

[quote Evo_ermine]

Aside from the Opel/Vauxhall figures, the $7.6 billion (£4.83bn) profit is a pretty epic turnaround from 2 years ago. Amazing really considering they were possibly a sunken ship.

[/quote]

Good point, especially when you consider they repaid alot of the money they owed to the US goverment and developed/produced a plug in Range extending vehicle,

Must be a major relief to the US, at least, employees

16 February 2012

[quote petrolheadinrussia]

My info reveals that the actual losses were S, America nd UK - Opel supposedly broke even. This will spell the end of the Vauxhall name finally. Which means that at least Clarkson will have one less car to take the piss out of. On a serious note though - those at the Vauxhall plant should at least sit tight till they are made redundent and get the package that goes with it. If Macarroni face is chucking bonuses to those in the States then he better have a good excuse not to pay compensation/redundency packages to the guys in London. He wont care about the S american plant - he will just close it without fanfare

[/quote]

Who's Macarroni face?

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