As General Motors posted a profit of $7.6 billion for 2011, it also lost $747 million from its European operations. It’s no secret that Opel/Vauxhall has been bleeding money since 1999, or GM’s desire to restore the division — which has been essential in global product development — but it’s been kind of a mystery as to how much it would cost, or when it will happen. Well, according to one report it won’t be cheap, and the return won’t come anytime soon.
RBC Capital Markets in New York, estimates European restructuring expenses of $600 million this year and $400 million in 2013. GM Europe has also been struggling with declining market share, and may shut down a pair of manufacturing plants as a result.