If a report from German newspaper Handelsblatt published on Tuesday rings true, General Motors walked away from a serious financial mess. The newspaper reported that Opel lost over $1 billion in 2017, specifically, $1.24 billion.
The figure far overshoots Opel’s last yearly performance under GM, when Opel and Vauxhall lost $257 million in 2016. Both brands were supposedly on the mend under a turnaround plan championed by former Opel CEO Karl-Thomas Neumann and GM CEO Mary Barra. The brands lost $813 million under GM ownership in 2015, and the business failed to turn a profit for 19 years.
Opel and PSA Groupe vehemently denied the report and said, “This figure doesn’t exist inside Opel/Vauxhall, as it is not available.” PSA will reportedly announce 2017 earnings during a March 1 conference.
The potential losses back up Opel’s shrinking sales in Europe. Despite seven new vehicle launches, Opel sales dropped 5 percent last year. In contrast, the European auto market grew by 3.3 percent. GM reported a 2017 EBIT (earnings before interest and tax) of $12.8 billion for last year, but registered a net loss of $3.9 billion. The loss comes from a substantial charge of $6.2 billion surrounding the Opel and Vauxhall sale.
Still, the move could be a long-term victory for GM if Opel is, indeed, hemorrhaging cash. PSA CEO Carlos Tavares unveiled Opel’s turnaround plans last year and will target a 2 percent operating margin by 2020, and a 6 percent operating margin by 2026. Tavares insisted the Opel acquisition will unlock greater economies of scale and produce healthy synergies between the brands.
Comments
dropped 5 percent less year->dropped 5 percent LAST year
German media are very national! OPEL also had no neutral news from GM at GM. It may be that the German media OPEL continue to rate bad to protect pure German carmaker. I stand by OPEL and continue to buy OPEL cars.
Germans had a disdain for Opel as they viewed it essentially as being General Motors (the United States) as German politics slam the United States at every opportunity and stop to think that Germany has not fulfilled it’s obligation to NATO in over a decade as they forget it’s the United States that saved Germany from Russia and continues to do so.. because if the United States was not a member of NATO, Germany and most of Europe would swallowed by Russia.
Wow.
1. Americans have disdain for GM for making MEH cars compared to Japan.
2. Our current President justifies slamming the US at every opportunity
3. The last US election was swallowed by Russia
John, I’m convinced that one third of “conservative’ America idolizes Putin and thanks him for manipulating democracy at home and abroad.
These people will sacrifice freedom to make America and the West immigrant free.
Germans want domestic brands. Unlike the US, they lost the war, and since focused on economic instead of military might.
We on the flip don’t care about anything including Presidential treason.
“John, I’m convinced that one third of “conservative’ America idolizes Putin and thanks him for manipulating democracy at home and abroad.”
No, no. Those are big words. Complicated concepts. His base are racists that get behind fascists. Which is part of what you’re saying.
“We on the flip don’t care about anything including Presidential treason.”
You’re not following post Trump election results.
“Germans want domestic brands.”
This is a given when your domestic brands don’t suck.
If not for USA Europe would all be Germany and not the one we have today.
What a shame GM sold them. They could have lost another billion.
As for the last election. Russians or not little would have changed. Hilary is a very un likable person and she blew it herself. Trump did not beat her she beat herself.
The reality is election influence has gone on for centuries. Everyone has don it including the United States. It is time to stop the shock and outrage as it is nothing new.
What is new is the influence by outside groups like a Move On and Brannon’s group. Private money is going in at a much faster rate than any with web use to influence elections.
Like It or not we have to deal with Putin. He holds great influence and power. Calling him a prick is not going to get anything accomplished. He needs to be managed and feeding his ego is is soft spot. He is a killer and will return to his roots if we remain predictable.
As for immigration. Conservatives have no issue with legal immigration of people that follow the rules. The illegal immigration is the problem. We have no idea who is coming in with what. Also the human trafficking issue should be a greater concern to all as many are dying and being inslaved in the sex industry but yet the far left never sows any concern as all they want is their vote.
Shame on the right for not putting the spot light on the trafficking.
Economic nationalism plays a huge part as I have always said. Ford has been able to avoid some of the sting, however, by reducing its footprint and focusing on fuel economy.
I don’t get why Vauxhall is doing so poorly. Opel makes a quality, beautifully designed product.
I don’t get why GM Authority even think this ‘Opel’ story is newsworthy on a GM website.
Opel are now an afterthought in the GM annals of history.
Moving right along……
Opel sells cars to GM; they put Buick stickers on them. The best design and engineering in GM product lines for decades came from Opel.
They’re still part of GM news, like it or not.
Lang, You are my new favorite poster!
GM, Opel and PSA will all be linked for quite a while. Long-term, I predict GM taking a healthy PSA under it’s wings as Toyota has Mazda and Subaru. GM will once again want an EU distribution and logistics network and only PSA is an option.
GM and PSA could complement one another nicely like Renault-Nissan.