GM Europe Lost $2B in Q1

General Motors yesterday announced its financial results for the first quarter of 2009, with the whole company reported a loss of no less than $6 billion. Although this is indeed an important loss, some people are more interested in GM Europe's fate as several European units are now involved in more or less advanced selling processes. Opel for instance, GM's German asset, is now up for sale, with several companies, including the already-a-giant Fiat who recently formed an alliance with Chrysler.

Getting back to GM Europe, the division reported a loss of no less than $2 billion in Q1, according to official papers rolled out by the company, with most of its units unveiling collapsing sales.

Specifically, Opel/Vauxhall's sales fell 29 percent to 297,000 while Chevrolet's European division brought a drop of 26 percent to 97,300 units. Saab sales are down as well, with delivered reduced by 52 percent to 9,500 units.

"However, due to sales declines in other countries, GM Europe experienced a 46 percent decline in production volume versus the year-ago quarter, which largely impacted regional earnings," General Motors said in the financial papers rolled out yesterday.

A bright spot of the financial results is still Germany that remained the only country which reported increased sales. The reason? "The aggressive government stimulus for the automotive sector" that convinced new car buyers to cease their old car for a new and less-polluting model."

“Our goal is to fix this business once and for all to position ourselves to win in the long-term. That will be achieved by putting the customer first in all we do, focusing on fewer, stronger brands and developing great products that lead in design, technology, quality and fuel efficiency," GM's new CEO Fritz Henderson said.