General Motors’ North American operations posted a $9.6 billion fourth quarter loss earlier today, and it doesn’t appear as though the fourth quarter went any smoother for the automaker’s European division. GM Europe reported an adjusted loss of $956 million in the fourth quarter of 2008 – more than a fourfold increase over 2007’s losses.
For the year, GM Europe posted an adjusted pretax loss of $1.6 billion, compared to a $55 million loss in 2007. That loss increases when asset and special charges are including, tallying $2.8 billion in the red, according to Automotive News.
Slower sales and a consumer shift away from premium models also took a toll on GM Europe’s year-end revenues, with final figures checking in at $34.4 billion – down just over $3 billion from 2007.
As bad as 2008’s results were for GM Europe, things could get even worse by the end of 2009. Rumors have been swirling about GM trying to unload its German Opel brand, with Saab’s future apparently limited to just days, or possibly even hours. Since GM Daewoo actually takes credit for Chevrolet ’s European sales, GM’s European revenue could be next to nothing by this time next year.
