Opel lost an average of 938 euros, or $1,200, per vehicle in the first half of the 2012 — a statistic that blatantly demonstrates the financial issues at GM’s European operations.
For its part, General Motors is applying several short-term tactics that aim to put a band-aid on the hemorrhaging business, as just last week the company announced reduced working hours at two of its German plants, affecting thousands of employees.
In addition, GM has been working on a long-term plan to bring its European business to profitability, although it’s questionable whether this can be done without considerably cutting its costs by laying off a sizable part of its workforce, or if Opel is being fully compensated for its work. The General has, however, established an alliance with PSA Peugeot Citroen whose goal is to deliver increased cost efficiency and economies of scale while expanding Opel’s presence around the world.
However, losing an average of $1,200 on each car sold is nothing to sneeze at, especially when these losses are eating into what is an otherwise healthy company.
Comments
So frustrating!