It surely came as no surprise to General Motors executives that their European division is once again, bleeding cash. After all, they knew that Opel and Vauxhall had already lost US$580 million in the first nine months of 2011.
However, as the Wall Street Journal reports, they weren’t prepared for the “horrendous” fourth quarter losses. Therefore, despite declaring last week that it is determined to turn around Opel, GM is now seriously reconsidering its options.
According to the report, an unnamed GM official said on Tuesday that the U.S. group is almost fed up with its European brands’ inability to make progress: “There is an increasing frustration with Opel and a feeling that the cuts two years ago did not go deep enough. If Opel is going to get fixed, it is going to get fixed now and the cuts are going to be deep.”
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