GM's Huge loss's in Europe...no fast regional turn around likely..

[ozpont]

GM doubles European loss in 2012

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GM CFO Ammann expects conditions to worsen in the region.

Automotive News Europe | February 14, 2013 13:32 CET

DETROIT -- General Motors' losses doubled in Europe in 2012.

GM's net income was $4.86 billion last year, vs. a record $7.59 billion in 2011. Operating income in 2012, before any one-time items, was $7.86 billion, down from $8.30 billion in 2011.

In Europe, losses for the full year widened to $1.8 billion from $747 million in 2011, GM said today. It was the 13th straight year of GM losses in Europe and reflected the rapid deterioration of vehicle demand and economic conditions in the region.


GM has no plans to provide additional funds to PSA/Peugeot-Citroen, its struggling partner in the region.

GM in October said it expected the full-year operating losses in Europe to total $1.5 billion to $1.8 billion, with "slightly better" results in 2013 and targeting break-even by mid-decade.

Fourth quarter

GM posted a net profit of $892 million for the October-December period, nearly double the year-earlier figure. The latest results include several one-time charges and gains that added about $100 million to GM's bottom line.

In Europe, GM's fourth-quarter operating losses widened to $699 million from $562 million a year earlier. GM wrote down $5.2 billion worth of assets in Europe and also wrote down $220 million, or about half, of its investment in PSA.

North American operating profits dropped 7 percent in the quarter to $1.40 billion. Full-year profits in the region fell 3 percent to $6.95 billion.

GM's global fourth-quarter revenue grew 3 percent to $39.31 billion.

In North America, the drop in fourth-quarter operating profit came as higher costs and weaker pricing outweighed higher volumes and better product mix, including stronger sales of profitable full-sized pickups.

Ammann said a busier vehicle-launch schedule pushed fourth-quarter costs higher in North America, but he said that vehicle mix improved "for the first time in a long time." He said that's "a reflection of the new vehicles that we're bringing in and the profitability of those vehicles."

Lower pricing in North America, which shaved about $300 million from operating profit, stemmed from a clearing of inventory of outgoing models, Ammann said.

China, Russia boost

GM's international division -- which includes China, Russia and other emerging markets -- posted a 27 percent increase in fourth-quarter operating income to $473 million, as stronger volumes and pricing offset higher costs. For the year, operating profit there rose 15 percent to $2.19 billion.

South America saw the automaker's strongest profit gain in the quarter, swinging to a $99 million operating profit from a $225 million loss a year earlier. GM is launching a slate of new or redesigned vehicles in Brazil and other countries. For all of 2012, South America swung to an operating profit of $271 million from an operating loss of $122 million in 2011.

GM Financial's operating profit dropped 14 percent to $146 million in the fourth quarter, but rose 20 percent to $744 million in the full year.

[LeighP]

Perhaps people in Europe have finally realised that GM Europe's cars are crap, and have stopped buying them?????
Just a thought.....