GM says that its European operation Opel has lost $18 billion since 1999. This, in the minds of many investors, undermines the profits that GM makes in large markets–particularly the US and China. With the Opel drag, GM’s stock is not likely to move back toward the highs reached since it emerged from Chapter 11. The No.1 car company’s stock has been as high as $36.91, but is down to $26.22.
The GM problem in Europe is likely to escalate as it presses for cost cuts which would include plant shuttering and layoffs. Germany’s powerful unions will probably appoint US UAW chief Bob King to the Opel supervisory board.
According to WSJ, the talks between labor and company are ongoing and
As part of the discussions, GM is considering closing assembly plants in Bochum, Germany, where it employs about 3,100 workers, and Ellesmere Port, England, where it has about 2,100 workers.
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