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Vauxhall parent narrows European losses in second quarter
Carmaker Vauxhall’s US parent General Motors (GM) has revealed a robust second half performance, with losses narrowing for a second consecutive quarter in its European division.
The Detroit-based group announced £21.14bn of sales during the second quarter of 2010 and earnings, before interest and tax, of £1.27bn.Its main North American market delivered £1.02bn of earnings before interest and tax during the period, which was up from £764m in the first quarter.
The group, which filed for bankruptcy protection and was bailed out by the US and Canadian Governments last year, incurred losses before interest and tax at GM Europe of £127m – £191m better than the previous quarter.
A spokeswoman said this was “predominantly driven by increased industry volume and favourable foreign exchange, mainly due to a stronger British pound.”
GM ended the second quarter with £20.7bn of cash and securities.
Vice chairman and chief financial officer Vince Liddell said: “I am pleased with our progress on achieving our business objectives.
“We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe . . . and delivered two consecutive quarters of profitability and positive cash flow.”
Vauxhall’s Ellesmere Port plant employs about 2,000 staff making the Astra model. It escaped relatively unscathed in GM’s restructuring which will cut about 9,000 European jobs.
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