🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

GM's Opel unit may break even before 2016 - WSJ

Published 14/04/2014, 13:41
GM
-

(Reuters) - 1:GM's loss-making European unit, Opel, may break even before its 2016 deadline, the Wall Street Journal reported, following an interview with the unit's chief executive, Karl-Thomas Neumann.

Neumann he was sticking to his official target to return Opel to break-even in 2016 but did not rule out an earlier return to profitability.

Analysts have suggested that Opel could turn profitable as early as next year, the Journal said.

"If everything goes well, theoretically that can't be ruled out," Neumann told the paper.

Opel has suffered for years from management disruptions, a scarcity of small cars that resonate with European consumers, and the tension between GM's desire for global economies of scale and Opel's calls for customizations for the local market.

GM came close to selling Opel in 2009 before dropping the plan.

Fixing GM's European operations, where Opel CEOs have come and gone in rapid succession and where GM has lost some $18 billion (10 billion pounds) over the last 12 years, is at the top of GM CEO Mary Barra's to-do list, analysts have said.

GM announced plans in April last year to invest 4 billion euros (3.2 billion pounds) by 2016 in Germany and Europe to overhaul Opel's ageing product range with 23 new products and 13 new engines.

"We're careful now with new investment and are trying to understand and monitor the situation as it develops," he said. "Of course, Russian economy is a cause of concern," Neumann said.

European car sales rose 7.6 percent in February as a gradual economic recovery in Portugal, Spain and Italy boosted demand for mass-market brands, industry data showed last month. General Motors' sales rose 12.3 percent in Europe.

(Reporting by Sweta Singh; Editing by Saumyadeb Chakrabarty)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.