General Motors’ European division continued to inch closer to breaking even in the second quarter of 2015, posting a $45 million loss for the period.
While the news isn’t exactly great — a loss is a loss, no matter how you look at it — the results do represent a noteworthy improvement of $260 million compared to the $305 million loss posted during the second quarter of 2014.
GM has been aiming to turn a profit in Europe by the 2016 calendar year, and says that the Q2 results “demonstrate we are on path to [European] profitability in 2016”.
|Operating Segment||Q2 2015||Q2 2014||H1 2015||H1 2014|
|GM North American (GMNA)||$2780||$1385||$4962||$1942|
|GM Europe (GME)||($45)||($305)||($284)||($589)|
|GM International Operations (GMIO)||$349||$315||$720||$567|
|GM South America||($144)||($81)||($358)||($237)|
|Total Operating Segments||$3165||$1572||$5479||$2162|
Other noteworthy details GM Europe in Q2 2015 include:
- Q2 results demonstrate the automaker is on path to profitability in 2016
- The European automotive market is continuing to improve despite continued weakness in Russia
Wholesales decreased 2,000 units, driven primarily by decrease of over 70 percent in Russia partially offset by growth in Western Europe and Turkey
- Market share was 6.3 percent, reflecting the wind-down of the Chevrolet brand and Russian operations
- Opel / Vauxhall brand continued to increase market share
- GME Q2 EBIT-Adjusted increased approximately $0.3 billion year-over-year, key drivers included:
- Price: driven by favorable pricing on recently launched products, including the Corsa and Vivaro
- Cost: driven by absence of restructuring expense, favorable material cost performance, partially offset by unfavorable increased material cost on recently launched vehicles
- Other: primarily related to foreign exchange rates associated with Euro, Russian Ruble, partially offset with British Pound
- H2 2015 performance expected to be impacted by seasonality and launch related costs