While General Motors earned healthy profits during the fourth quarter of 2014 as well as for the full 2014 calendar year, its European division continued to post ever-greater financial losses.
During Q4 2014, GM posted a pre-tax profit of $2.4 billion, up $500 million compared to the third quarter of 2013. Spurred by stronger pricing in major markets and robust sales of pickups and SUVs in North America, the results represent GM’s best fourth quarter since emerging from bankruptcy in 2009. For the full 2014 calendar year, pre-tax profit was $6.5 billion, down $2.1 billion compared to calendar year 2013 due to recall-related expenditures.
But as GM as a whole posted notable growth, its European operations continued to post significant losses, bleeding more money in 2014 than in 2013. GM Europe posted a $393 million loss during Q4 2014, a loss increase of 7 percent or $27 million over Q4 2013.
General Motors Europe Financial Results - Q4 2014
| Q4 2014 | Q4 2013 | Q4 2014 - Q4 2013 | % CHANGE Q4 2014 / Q4 2013 |
|---|---|---|---|
| -$393 million | -$366 million | -$27 million loss increase | +7% (loss increase) |
For the full 2014 calendar year, GM Europe posted a $1.37 billion loss, a loss increase of 52 percent, or $471 million.
General Motors Europe Financial Results - 2014 Calendar Year
| CALENDAR YEAR 2014 | CALENDAR YEAR 2013 | 2014 - 2013 | % CHANGE 2014 / 2013 |
|---|---|---|---|
| -$1.37 billion | -$899 million | +$471 million loss increase | +52% (loss increase) |
GM Chief Financial Officer Chuck Stevens attributed the losses to the economic troubles experienced affecting Russia, where a weaker ruble and slumping economy has made it more challenging for consumers to pay for new vehicles, resulting in slowing new vehicle sales. GM sells vehicles from its Chevrolet, Cadillac, and Opel brands in the country.
“As we go through 2015, Russia will continue to be a headwind,” Stephens said to reporters in early February at GM’s headquarters in Detroit. “But we’ve taken and will continue to take aggressive action to mitigate those issues.”
To mitigate the situation in Russia, GM has laid off plant workers and will suspend its manufacturing operations at its plant in St. Petersburg for roughly two months. The automaker has also adjusted prices of its vehicles to offset the devaluation of the ruble.
Comprised of Opel and Vauxhall brands, GM Europe hasn’t turned a profit for well over a decade. Since emerging from bankruptcy in 2009, the automaker has been working to turn around the division’s financial fortunes. In 2013, the firm was working towards breaking in the region in 2015, and becoming profitable in 2016. But in December, GM Europe chief, Karl-Thomas Neumann, stated that the 2016 profit target was threatened by economic challenges. Meanwhile, GM CFO Stevens reiterated the 2016 profitability objective.
Comments
VW Group has a true stranglehold on the Euro market. With Audi, VW, Skoda, and Seat, they have all price ranges covered. BMW and Mercedes cover the real estate above VW. The rest is picked up by the Italian and French nameplates, the bottom belongs to Dacia. There is nothing left for Opel.
There are also cultural hurdles; Opel is to Europeans as the Yugo is to Americans. There are many Europeans who wouldn’t be caught dead in anything made by GM. The Euro market has spoken the same way the American market decided several years ago, and the company should have been allowed to die. Really too bad, I am confident something better would have grown in its place. The only records new GM is breaking are in recalls and price hikes.
@magirus Ford has a better market share in Europe than Opel and the name is 100% American. It also sells more than any French or Italian brand. Hyundai-Kia are also doing good (>5% market share combined – more than any Italian brand) so europeans don’t hate or dislike brands from other continents…
VAG is still preserved by the totally different and very strong as well. Find out which products are canned VAG offers and it is all original European product, and yet these products are offered throughout the world. and the VAG group are products of a very big names as well.
But GM Opel-Vauxhall in Europe are basically alone. But canned vag is a lot to learn, since the VAG canned seriously began to evolve and grow giant in the 2000s. The economic situation is also constantly changing. One of the economic crisis is over it will be another battle. change of power in another country and start messing ride. Then the price of oil will be playing. Kogua time for all sorts of things happening in the world. When people think about the broader and more able to see it to understand that not everything is black and white only. Different economic problems and suffer so many different things. Different countries may have different consequences for the economic problems. America and Europe will certainly feel differently, and their understanding of the kinds of problems can also be different, because everyone is different.
Someone told Ford. Ford is similar to the Opel. Opel is GM’s European and American buick today or in part, but still a very eirnevad even in these models, which are very similar. However, the same story is also a ford ford names used in different countries. The ford is a very different product. Someone told me that no one hates the differences between the various countries, whether European or American hates hates American cars European cars. It is sad that someone so foolishly thinks. And this is not true. But the thing is sure that America is easier for a European car culture than American cars in Europe. American and European cars are quite different in Europe and American cars are a little more common, because these cars are a major difference. All things can not and will not come over to talk to the father who knows and knows how to think about things he knows.
And finally, another thing to know how well the American way things are done in Europe and America as well in Europe knows how things work. Basically, the US did not even know anything Opel. And as well as Ford of Europe. Ford Focus RS, and it is now a global one sees for the first time this car and says that it’s an American car. VAG canned products also consists of very different countries. The idea is that, just think of all the things and understand first. Nobody hates nothing but take into account the different features and different things according to the deal.
VAG consern is europa. GM consern is US-EU. Gm is more complicated. more difficult to collaborate and understand each other. It may also be one of the GM for a negative thing which can also be fatal. Global company can also be very successful, however, it can also die. From the outside GM, Opel and Ford are sometimes still feel sad though and wish that things were different. I’m not very familiar with Ford but Ford of Europe and the US are often the topic was sad and funny. Golbaalsetes holdings may be internal disputes and funny fabrics that can do harm to the company. VAG konsernis actually attending the various disputes between the different products and things, but it’s still a different theme. GM appears to be a global disputes and disagreements
But let me link it with the latest sales numbers for the last period of a Ford-opel- vag Europe. I want to see all the information. can find any information about themselves than bother going.
and here is a very big role in the firms themselves. GM is today the situation changed to much compared to the prior period. New GM management team and all the others. The key to success is the people’s hands. I know that Opel has suffered. I’ve learned that Holden has suffered. I’ve realized that Vauxhall has suffered. I do not know exactly what the situation in the American market for its products have been different. But I know that there are major changes in the GM again and objectives seem to be correct and positive.
and I clearly do not understand and do not know how the American market works and how things go there. how well or bad things are out there.
I’m pretty sure Chevrolet pulled out of Europe aside from Corvettes/Camaros. And Cadillac is still trying to build up any customer base to speak of, sadly, and they clearly have very limited marketing resources. I’d hate to see them go as well now that they’ve started pushing into EU. I do see plenty of Opels around though.
But all of this is management’s job. directors will depend very much. Global companies are certainly more difficult to manage. But if GM wants to be when she has a great success. all depends on the wishes of the leadership and vision. New GM management has failed at me quite a positive impression and you want to give hope and vision. PONTIAC and SAAB bankruptcy, and whether they are still manufacturers. GM has been very good, and the times and bad times. But we have so many car manufacturers have been. But the previous GM’s management was successful. VAG GONSER basically all car manufacturers have added has become more successful and more and more successful in growing. VAG GONSER became serious in the 2000s, and is becoming more and more successful. Expanding and better quality.
I admire the way VAG GONSER running and I’m envious. Everything has to be at a high level in order to be successful.
Ford and GM have started to pay more attention to the global market. But all this does not happen in one day. Golbaalset market just in the sense that American cars are coming to Europe pricelist seriously. American cars are nowadays already become more global, even the American market itself. Just some time back toward the American and European cars were still too different. And American cars because of the particularities of these cars were less frequent in Europe, and they were more like a hobby like cars. American car design, size, big engines consume a lot of fuel, and so on. There was just a very viable in Europe. Europe was more difficult for the American car culture. European car culture, but in America it is easier to accept. There’s no hatred. Or motorcycle culture. It also has a similar theme. Just cultural differences. And if it is a global company with a variety of cultures, it is quite difficult to understand each other can be. This can be very useful and can be very harmful as well as the successful undertaking.
Corvette has been successful in Europe and become more successful. Camaro will also become more global, this will definitely help you. But in order for the team work hard and success will not come himself. Products must be in a very decent and advertising, and everything else as well. Ford Mustang has also been quite successful, however, the new Ford Mustang will certainly be much more successful because it is totally changed. Some may begin to talk about the stupidity of the Ford Mustang, this is no longer true American car. Surely then the name is still, after all. It is important that the product will be a success. The new Corvette and the new Camaro. Some say that it is not what it was 70 years ago. and then. Names will remain on cars, after all, and if they only become better it is, after all super. But some want to just one car produced by a hundred years. All right to be respected and their opinions and thoughts. But I’m on innovation. History is also important. But history also has many manufacturers and should not be changed. This is a car that was produced a hundred years ago, the history and what kind of car it is produced today is today. And tomorrow is the future of cars produced. History is what it is. However, the future will always be better. if anyone wants to tomorrow to start producing cars which are produced in a hundred years ago. Some certainly would.
Marigold, sorry you do not seem to know what you are talking about?
Opel sells lots, of cars in EU. Lots. They are in the top 5 most markets. In some they are ranked first even. There are only a few where they do not sell well.