Despite problems with the Russian market, as well as restructuring costs, General Motors says Vauxhall and Opel are on their way out of the red and into the black.
Automotive News reports the European duo took a Q3 2014 loss of $387 million, compared to $238 million lost in Q3 2013. The majority of the loss comes from Russia, where GM booged $194 million in write-downs. A currency challenge with the ruble contributed $100 million to the overall figure, as well.
Barclays Capital analyst Brian Johnson believes that, putting aside the Russian-linked losses, Vauxhall and Opel are coming close to breaking even:
Backing out the losses from Russia, partly from the one-off charges and other related headwinds and partly from a depreciation in the ruble, Opel/Vauxhall looks to have been close to breakeven for the quarter.
GM is looking toward 2016 as the point where both of its European subsidiaries will be in the black, with future earnings between now and then tied to both the upcoming Corsa — set to arrive in January — and Astra. The Corsa already has 30,000 pre-orders, while the outgoing Astra saw its sales fall 9 percent through August 2014 to 121,950; the next-gen model will arrive in 2015.
Overall, the duo saw a 2 percent increase in sales during Q3 2014, moving 253,000. Annual sales through September climbed 8 percent to 683,797, and market share climbed a percentage point to 6.9 percent.
The post GM: Opel, Vauxhall Edging Closer To The Black Despite Russia appeared first on The Truth About Cars.
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