General Motors CEO Mary Barra said Thursday the company is standing by its promise of returning to profitability in Europe by 2016, Reuters reports. Opel president Karl-Thomas Neumann cast doubt on the mid-term target in December, saying the profit goals were “not secure” and that they “see strong headwinds for 2015.”
Opel/Vauxhall reported a third-quarter loss in Europe in the third-quarter of 2014 of $387 million, up from a $238 million loss the year prior. The brands’ deliveries rose 3 percent in 2014 to 1.08 million units, while combined market share rose 0.1 percent to 5.74 percent. GM’s European arm is looking to claim 8 percent of the European car market by 2022, as outlined in the Drive Opel 2022 intiaitive.
GM’s outlook for Europe in 2015 goes against that of Ford, which changed its outlook on the region amid ongoing financial troubles in Russia. The automaker, which filed a $439 million loss in the third-quarter of 2014, has said it will not achieve its previous goal of returning to profitability in Europe this year.
Automotive analysts say that while both Ford and GM offer competitive products in Europe, both brands are not strong enough to command asking prices necessary to drive profitability.