Boston, MA 10/24/2013 (wallstreetpr) – The U.S. giant automaker General Motors Company (NYSE:GM) seems keen in entrenching itself in the red-hot European automobile market in a different format than earlier thought. It has been reported that the carmaker is reviewing its deal with the French automaker Peugeot following the slide of the latter in the recent quarter posting. The French automaker reported a 3.7% decline in its quarterly revenue, thus hurting the supposed alliance with GM.
As possible partners continue to lose massive ground, the U.S. automaker now seems more interested and more confident to go it alone in pursuits of the European automobile market share. So the carmaker is cancelling Peugeot from its cards according to sources from each end.
That GM is increasingly getting committed to run its own affairs in Europe can be seen in the company’s recent hiring of a former Volkswagen executive Karl-Thomas Neumann to lead its Europe division and then partially transferring Opel Mokka production to Spain from Korea. And just this week, GM announced restructuring of its sales in the Russian market, saying GM’s and Opel’s sales in the lucrative Russian automobile market will now be masterminded from GM’s headquarters in Europe.
It thus seems the Detroit-based car maker has lost interest in partnering with struggling industry players and would thus use its own already solid network and platform to drive up sales globally and return dollar value to investors.
In 2011, GM made losses of $700 million in its European market. This bleeding continued last year where it lost a whopping $1.8 billion in this region. So far in a span of 12 years, GM has faced $18 billion in losses in Europe and now it appears the Detroit carmaker is not going to take losses any more, at least going by the indications already on the air.
GM slipped in Wednesday’s trading to end the regular trading session down at $35.05, having lost 1.02%.