GM sees fall in Q1 profits
GENERAL Motors, the parent company of Vauxhall, said its loss-making European business “remains a work in progress” as it reported a fall in first-quarter earnings.
Details of restructuring in GM Europe are expected soon after months of speculation over the future of the Vauxhall Ellesmere Port factory, which employs 2,700 people.
Detroit-based General Motors said Net profit for the first three months of the year was $1.35bn (£830m), compared with $3.41bn a year earlier.
The Europe divsion, which also includes Opel, made a loss of $300m in the period, compared with breaking even in early 2011.
Global sales, thanks to booming demand in China helped push overall revenue up 4% at $37.8bn.
Chief executive Dan Akerson said: “”The US economic recovery, record demand for GM vehicles in China and the global growth of the Chevrolet brand helped deliver solid earnings for General Motors.
“New products are starting to make a difference in South America, but Europe remains a work in progress.”
While making no secret of its plans to address the over-capacity issues in its European business, GM has steadfastly refused to comment on rumours that it will close the Ellesmere Port plant and one other in 2014.
The Ellesmere Port plant is regarded as one of the most efficient plants in GM Europe and is the home of the Astra Sports Tourer model.
