Posts Tagged ‘gm opel’

Accounting Adjustment Masks Record Full Year Earnings for General Motors

Workers will get $11,750 in profit-sharing.

by on Feb.06, 2018

GM CEO Mary Barra has pushed for major changes in GM's strategy, and the 2017 numbers suggest her approach is paying off.

General Motors officially reported a net loss for 2017, but the real numbers were masked by a series of accounting adjustments and actually climbed into record territory for the year.

The adjusted, $12.8 billion in pretax profits, which worked out to $6.62 a share – an 8.2% year-over-year gain – comes as good news to workers as well as investors at a time when economic uncertainty has shocked Wall Street. About 50,000 U.S. hourly employees will share the maker’s success with profit-sharing checks averaging $11,750 apiece. That bonus actually dipped from $12,000 last year.

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“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year,” said GM Chairman and CEO Mary Barra, in comments during a media and analyst conference call. “We will continue executing our plan and reshaping our company to position it for long-term success.”


GM Net Goes $3b Into the Red for 3rd Quarter – But Still Beats Expectations

Bottom line hit hard by sale of Opel/Vauxhall subsidiary.

by on Oct.24, 2017

Despite a weak third quarter, analysts are showing appreciation for CEO Barra's strategy.

(This story was corrected to reflect the Q3 2017 EBIT-adjusted income for GM and the Wall Street forecast for the quarter.)

General Motors Co. posted a $2.98 billion loss for the third quarter of 2017, its net income hammered by a $5.4 billion charge resulting from the sale of its long-troubled European subsidiary Opel/Vauxhall.

Before taxes, GM actually earned $2.5 billion, a 32% decline from the $3.7 billion EBIT-adjusted number it reported during the July-September quarter in 2016. But Detroit’s automaker nonetheless managed to beat expectations, delivering per share earnings of $1.32 after factoring for one-time charges. Wall Street analysts had forecast earnings of $1.11 per share.

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Excluding the hefty cost of exiting Europe, “The way to really think about the business is obviously continuing operations and the core business,” said GM Chief Financial Officer Chuck Stevens. Significantly, all of GM’s other operations – including North America, South America, China and other parts of the world — were profitable for the first time since the fourth quarter of 2014.


GM Earnings Tumble on Weakening U.S. Demand, Sale of European Ops

But numbers manage to beat Wall Street expectations.

by on Jul.25, 2017

GM CEO Mary Barra: "discipline" pays off.

General Motors reported second-quarter net income of $2.4 billion, down about 15% year-over-year, reflecting a variety of headwinds, including weakening U.S. sales, as well as the sale of the maker’s European Opel Vauxhall unit to France’s PSA Group.

On a per-share basis, GM came in at $1.60, though that rose to $1.89 by excluding  one-time charges, well ahead of the $1.68 consensus forecast by automotive analysts polled by FactSet. As a result, the maker’s shares began trading up slightly in early morning trading.

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GM’s declining net earnings came as no surprise, especially considering the ongoing slump in U.S. new vehicle demand. It reported an overall 5% decline in June, continuing this year’s overall downward trend. In recent months, the automaker has voluntarily cut back on low-profit fleet sales, but June’s retail numbers were also down 3% for June.


Wrapping Up Opel Sale Could Take GM Years to Complete

GM and Opel’s new parent, Peugeot, might actually expand ties.

by on Mar.08, 2017

Opel's past and present debut together: the new Crossland X and the made-over Insignia.

When General Motors and PSA announced terms for the sale of the long-troubled Opel earlier this week, they said they expect to complete the deal later this year.

From a legal standpoint, barring some last-minute regulatory challenges, that’s likely to happen. But while the hand-off will be formalized, on paper, the long ties between GM and Opel will likely continue well into the coming decade.

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A full separation “is going to be (over an) extended period of time,” GM President Dan Ammann told during a conversation at the Geneva Motor Show.


Opel Takes Over GM Europe Operations

New change brings focus on entry-level small cars.

by on Jul.22, 2014

GM folded its European operations in the newly branded Opel Group as part of its plans to return to profitability.

General Motors plans to make its European operations profitable are taking shape as the automaker has rebranded its European unit as the Opel Group and a renewed its focus on small, profitable cars.

The re-branding took effect July 1. The new organization is based in Rüsselsheim, Germany, and will also oversee Chevrolet’s operations in Russia and Cadillac in Europe.

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“Today, we are more than just Opel/Vauxhall,” Karl-Thomas Neumann, CEO of the management board of Opel Group, said in a statement. “With the Opel Group, we align our organizational and legal entity structure in Europe with the business operations. (more…)

GM Pulls Opel Out of China; Will Play Larger Role in U.S.

New move in global brand realignment.

by on Mar.31, 2014

The Opel Adam S is not going to be available in China as GM is pulling the brand out of the country.

As part of a continuing global brand realignment, General Motors has pulled Opel out of China. The move comes barely a month after the Chevrolet brand was yanked out of Opel’s home market in Europe.

German-based Opel has been struggling to gain traction in China since entering the market there two decades ago. Even though GM is the second-largest manufacturer in the Chinese market – generating 3.16 million sales in 2013 – Opel’s 22 dealers sold a mere 4,365 vehicles there last year.

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But Opel won’t vanish entirely. Its product engineering operations will continue to assist in the development of new products for China – as well as for the U.S., Opel announcing it will produce a new model for Buick that will be exported to the States later this decade. (more…)

GM Investing $5.2 bil in Opel Turnaround

"Opel is key to our access," asserts CEO Akerson.

by on Apr.10, 2013

Opel continues to struggle for a turnaround.

General Motors plans to pump €4 billion into its struggling Opel subsidiary over the next three years in a bid to finally reverse 13 years of losses that have led some skeptics to call on the American maker to sell or shutter the German-based operation.

The move, worth $5.2 billion, approved by the GM board on Wednesday, is meant to show that Opel has the maker’s “full support,” declared Chairman and CEO Dan Akerson, who emphasized his belief that “Opel is a key to our success.”

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Following a meeting of the GM board at Opel headquarters in Russelsheim, Akerson declined to provide details of what the money will be used for, though the German subsidiary has been racing to streamline its bloated operations even while adding an array of new products such as the Opel Adam and Mokka models that have been among its few recent successes.


Union Pay Freeze Could Be Crucial for GM Europe

Workers trade wages for job guarantees.

by on Mar.01, 2013

GM is counting on new products like this Opel Adam -- and cost-cutting -- to help it reverse 13 years of European losses.

IG Metall, the powerful German metalworkers union, has agreed to a pay freeze for 20,000 union members employed by Adam AG Opel, General Motors’ principal European subsidiary. The move could be a critical next in the long-sought turnaround plan for GM which has suffered 13 years of worsening losses in Europe.

In exchange for the pay freeze, the automaker has agreed to hold off on layoffs and will continue operating a plant in Bochum, Germany that was slated to close permanently.

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German pay increases, put on hold in November as part of the negotiation process, will be postponed through 2015, the Ruesselsheim-based unit said in a statement today. GM will refrain from forced firings through 2016 as part of the deal, according to a statement posted on the German union’s web site.


GM Snatches New European Chief from VW

Neumann will be pressed to pick up the pace of cuts.

by on Feb.01, 2013

New GM Europe chief Karl-Thomas Neumann.

General Motors has recruited a former Volkswagen executive to run its beleaguered European operations, which have fallen ever deeper into the red for 13 consecutive years.

Karl-Thomas Neumann was named president of GM Europe, chairman of the management board of GM’s Germany-based Adam Opel AG and GM vice president. He was most recently CEO of Volkswagen’s flourishing China division.

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The 51-year-old industry veteran will be given the unenviable task of righting an operation that has run up billions of dollars in losses and largely squandered its once solid reputation in Germany and the rest of the European market. GM has confirmed it will have lost as much as $1.8 billion in Europe once final numbers are tallied for 2012.


Key Analyst Wants GM to Dump Opel

Opel is not for sale, responds GM CEO.

by on Jan.16, 2013

Opel is betting models like the new Adam can help turn things around -- along with job and plant cuts.

General Motors would be further ahead if walked away from its ownership of Adam Opel AG even it had to pay another automaker to take it off its hands, said one of the auto industry’s most influential analysts.

Adam Jonas, a managing director of Morgan Stanley, told the Automotive News World Congress the value of GM’s shares could increase by as much as 50% if it unloaded its ailing European business – something the maker has so far refused to consider.

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The fact is the efforts to turn around Opel have been slow, painful and expensive and nowhere near complete, said Jonas. Meanwhile, Opel has piled up $17 billion in losses since 1999. GM Chairman Dan Akerson has said he doesn’t expect GM to become profitable in Europe for another three years despite its latest turnaround plan’s draconian measures.