General Motors shares have climbed $2.29 at the time of this writing, as the company’s Q3 2012 earnings were better than what was predicted by Wall Street. But the financial results may only be part of the reason traders have warmed up to The General’s stock, as an underlying factor may very well be the company’s plans to further trim its European workforce.
As of this year, the company cut 2,300 jobs in Europe and is looking to trim another 300 in hopes to reduce costs and raise much-needed income. While this is arithmetic nobody likes to read or hear about, it does mean the company will be healthier financially, with most of the departures being voluntary or early retirements.
By the same token, GM predicts to break even before taxes by the middle of the decade in Europe. It has openly stated during today’s earnings call that losses this year could range from $1.5 billion to $1.8 billion, which is roughly double those seen in 2011. However, by the end of 2013, the losses seen by the operating unit are forecasted to be less than this year.
Comments
Keep going……. I didn’t see the Germans come to the rescue like the Americans and Canadians did. The European market can be served by cheaper manufacturing from other countries.
The American market could be served by all assembly and manufacturing being outsourced to China… We don’t like to hear that, just the Europeans don’t want to either
Everybody could be served by cheaper manufacturing in other countries. Chinese cars could be sold in Korea. Korean cars could be sold in South America. South American cars could be sold in Mexico. Mexican cars can be sold in the USA. cars built in the USA could be sold in Germany. German cars could be sold in Canada.
If your “reasoning” could be anymore broken and out of step, it could pass for a Canadian-built car.
Like Sheldon Cooper you don’t understand sarcasm.
Like a concrete wall, you can’t convey it.
Manga International is a Canadian company, the largest auto supplier that also assembles cars for major manufacturers.
Not to mention Canada has one of the most awarded assembly lines, the Oshawa Camaro/Impala plant, Equinox in Ingersoll, Corolla and RX350 in Cambridge.
There is also a company in Toronto that provides the monocoque for I believe the One-77.
etc…
Ahem…
I AM Jean Poutine.
🙂
I just don’t think a domestic Canadian car would be very good (vs. ALL of the imports in this country).