European woes reach General Motors
GM plans to close at least one European plant in 2016
The ongoing financial crisis in Europe has undercut strong sales in
North America. General Motors. America's largest automaker saw profits
falling 41 percent in the second quarter, underlining the fragile
connectivity of the international global economy.
GM is trying to restructure its European unit and has recently replaced several of its top executives in Europe. The company is planning to close at least one plant in Europe by 2016.
"Our results in North America were solid, but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America," GM chairman and CEO Dan Akerson said. "Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade."
GM is trying to restructure its European unit and has recently replaced several of its top executives in Europe. The company is planning to close at least one plant in Europe by 2016. GM CEO Dan Ammann stresses that there were no immediate plans to announce more job cuts or factory closings in Europe.
While GM's North America sales remain brisk, the slowdown of the U.S. economy has slowly but surely been taking its toll. GM and Ford announced this week that sales had slipped in July; GM deliveries fell 6.4 percent and Ford 3.8 percent, according to statements.
GM's fortunes have bounced back dramatically since its emergence from bankruptcy in 2009. The firm said it sold 2.39 million cars during the quarter, compared with 2.32 million a year ago. GM had $32.6 billion in cash reserves and other liquid assets at the end of the quarter.
The government-backed bailout has become a political hot potato, as GOP presidential candidate Mitt Romney has been a persistent critic of the bailout, running ads that highlight the plight of auto dealerships closed as a condition of the government-managed bankruptcies.
In contrast, President Barack Obama has championed the bailouts for saving over a million US jobs and criticized Romney for his 2008 New York Times editorial entitled "Let Detroit Go Bankrupt."
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: General Motors, European market, productivity, plant closures
Rate This Article
Leave a Comment
More Business & Economics News
- BAILOUT: Treasury, UAW health care trust will sell 50 million shares of GM stock at a $10 BILLION loss
- Great Recession took its toll: Americans missing their wealth
- Mom making more than dad in one in four U.S. homes
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.