General Motors' Business in Europe and Asia: Analytical Questions

889 Words4 Pages
GM in Europe What is GM doing wrong in Europe? Do we need a shakeout? General Motors (GM) is struggling with its Opel brand in Europe. While the company's North American and Asian businesses posted strong results, it lost $361 million in Europe compared to an operating profit of $102 million a year ago; the European business, which centers on the struggling Opel brand, has been hemorrhaging money for a decade (Vlasic & Ewing, 2012). The question has become whether or not the brand can survive at all. The company is considering many options. It can reduce its production and try to match the shrinking demand by cutting factories and employees. It could also shakeout the entire lineup and try to cut its losses in Europe. Despite the heavy losses in Europe, there are some signs of optimism for how the brand and the lineup could be repaired. The chairman of the Opel supervisory board, Stephen Girsky, stated that "Opel is the third biggest brand in the global GM portfolio and the third largest brand in the European market. Each year Opel sells well over a million cars. We are confident that the new leadership team and our long-term strategy 'Drive Opel 2022' will return the company to its old strength. We're working hard and every day we're getting better (Weber, 2012)." The company has been working diligently to come up with new models that are powered by new engines. Despite this effort, it is likely that the damage is too severe for the company to recover and eventually

More about General Motors' Business in Europe and Asia: Analytical Questions

Open Document