Gm continues to make money – just not in europe
The Opel parent company General Motors (GM) made profits again in the second quarter. In the months of April to June, the US automaker earned 1.33 billion dollars – the equivalent of 1.02 billion euros. GM only returned to profitability at the beginning of the year after a long dry spell, the group closed the first quarter with a profit of 865 million dollars. Revenue rose in the second quarter by more than five percent to $ 33.2 billion.
European business remains in the red
But while the sales figures in the USA increased significantly, the European business continued to develop weakly – the subsidiary Opel continues to make losses, as expected. In the second quarter, GM lost operationally $ 160 million with Opel and Vauxhall. Thanks to savings, the minus was at least lower than before: At the beginning of the year, GM had lost $ 477 million in Europe, and at the end of 2009 even $ 799 million. European boss Nick Reilly wants to lead Opel out of the red in 2011, and in 2012 the manufacturer should earn money again.
Return to the stock market in November?
The overall positive development should also promote the Group’s stock market plans. As early as Friday, the US automaker wants to submit the documents for the up to $ 20 billion IPO to the regulatory authorities, reports the Reuters news agency, citing "several people familiar with the plans". The IPO could then take place in November. About a week ago, GM CEO Ed Whitacre first publicly announced that he wanted to return to the trading floor. But he hadn’t given a date.
Ford remains the measure of all things in the USA
Despite rising profits, what was once the world’s largest automaker is still lagging behind its smaller US arch-rival Ford. This had survived the sales crisis in 2009 without government aid and achieved a surplus of 2.6 billion dollars in the second quarter. Chrysler, the third member of the US carmaker’s league, is far from that. The company, now managed by Fiat, posted – despite positive business results – the bottom line in past quarter continued losses.
The US government saved GM from extinction with around 50 billion dollars last year. From June to early July 2009, the company had prepared itself for 40 days under bankruptcy protection for the restart. Since then, the state has held almost 61 percent. A year after the third largest bankruptcy in US history, GM cut its dealer network by a quarter. In addition, the number of US brands was halved – only Chevrolet, GMC, Buick and Cadillac were kept. In Europe, Opel stayed with GM after months of hanging and Saab was sold.