General Motors recorded a loss of £2.26bn in the third quarter of this year, due to costs related to the sale of the Vauxhall and Opel brands.
The American firm recently completed the sale of its European operations to the PSA Group in a deal worth around £1.9bn. However, the cash it received from that sale was offset by costs relating to the deal, including charges relating to pensions and contract cancellations.
While GM had warned investors of a special one-time charge of costs relating to the sale, the final figure of £4.1bn was slightly larger than anticipated and only partially offset by the income of the firms.
Insight: why has PSA bought Opel and Vauxhall?
The sell-off of Vauxhall and Opel is part of a wider series of moves by GM to withdraw from unprofitable markets. It has also announced it will stop selling vehicles in India and sell its South African operations to Isuzu.
GM’s revenue in the third quarter of the year – running from July to September – totalled £25.5bn. That was down 13.5% year on year but was higher than had been expected, prompting the firm’s share price to rise after the announcement.
The firm’s third-quarter earnings report also highlights the growing importance of China to car makers. GM brands delivered 982,311 vehicles in the country in that period, an increase of 12.3% year on year.
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GM's Prospects
Doesn't look too good for The General does it,flogging off the European & South African operations,pulling the plug on manufacturing in Australia, closing down the Indian operation seems a bit short sighted as India must be one of the largest emerging markets in the world. It's very sad most of the other GM divisions that sold aero engines,buses,heavy trucks,railway locomotives plus a myriad of services has largely been sold off. GM is a husk of it's former self and the days of when it had half of the US car market are long gone,very sad
They can’t be that good....
...they never made it to Europe under Vauxhall / Opel brands....
Thekrankis wrote:
Which is completely irrelevant. The technology they employ is used across all of GM's brands.
Thekrankis wrote:
Which is completely irrelevant. The technology they employ is used across all of GM's brands.
Good Riddance
GM have been incompetant for years, churning out deadly dull, boring cars.
I do hope PSA manage to do something worthwhile with Vauxhall/Opel but I fear they will slowly close them down and maybe do a bit of re-badging.
Thekrankis wrote:
I disagree. As an owner of an '18 Terrain Denali and '09 Suburban LTZ, and having driven plenty of their cars, I can assure you they make very competant, well-built and attractive vehicles.