By on October 27, 2014

opel-corsa-2015-18

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 took $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.

Get the latest TTAC e-Newsletter!

Recommended

14 Comments on “GM: Opel, Vauxhall Edging Closer To The Black Despite Russia...”


Read all comments

Recent Comments

  • Peter Gazis: MorrisGray EVs have half as many moving parts as gas models. Any brand that goes heavily electric will...
  • gtem: So: brutally ugly inside and out, needlessly firm suspension, low-pro tires that will get chewed up by...
  • Scoutdude: The reality is the first one, the full hybrid was sold at a loss, they didn’t want to sell more...
  • gtem: Honda and Toyota (Aisin) have their own in-house transmission sources, why on Earth would they outsource to...
  • lunosalpha: I had this exact car with different wheels and a sun roof and very much missing A/C. Drove this car...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Timothy Cain
  • Matthew Guy
  • Ronnie Schreiber
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth