General Motors’ former European subsidiary, Opel, reported a $250 million loss in the second quarter 2017. GM recently sold the unit to French automaker PSA Group after owning it for roughly a century.
According to German auto publication Automobilwoche, the automaker was losing 4 million euros ($4.74 million) every working day. The figures represent an increase of $40 million from the $210 million lost in the first quarter of 2017 under GM.
General Motors sold Opel to PSA Groupe, the owner of the Peugeot, DS and Citroen brands. The move removes million of units from GM’s annual sales volume while removing from its balance sheet a loss-making unit. Opel posted multi-million dollar losses under GM for well over a decade.
In May, PSA Group CEO Carlos Tavares said that he expects Opel to continue losing money in 2017 but is looking to return Opel to profitability no later than by the 2020 calendar year, with operating margin goals of 2 percent that year and around 6 percent by 2026.