Huge losses for European unit of General Motors

Feb 16, 2012, 13:20 GMT

New York - The European division of General Motors was hit by huge operating losses of 747 million dollars last year, despite the carmaker's North American parent returning to record profit, financial data issued Thursday showed.

In 2009, GM had considered selling the division which makes Opel and Vauxhall cars in Germany and in Britain, but changed its mind. The 2011 losses again raise the spectre of an uncertain future.

The figures came well short of the 2-billion-dollar loss in 2010, but disappointed hopes that the unit would turn the corner to profitability.

Strong North American sales pushed overall earnings at GM to 7.6 billion dollars. Chief executive Dan Akerson said in Detroit that they had been winning market share around the globe, but admitted sales in Europe and South America were below expectations.

The European unit has only turned a profit in one of the past 12 years, in 2006. Last year GM shut a car factory in the Belgian city of Antwerp and slashed its workforce of 48,000 by 8,000.