After Investing $400M in Peugeot, GM Might Close Euro Plants
- Posted on March 14, 2012 at 9:36pm by
Becket Adams
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General Motors CEO Dan Akerson sat down for an interview with Fortune Magazine’s Adam Lashinsky and admitted that the Detroit automaker might close some of its European plants.
“In the U.S., GM was able, through an extraordinary set of circumstances, to take some drastic action: you closed whole factories, you closed whole historic brands in the United States. Can you take, and will you take, drastic action like that in Europe?” Lashinsky asked.
Ackerson responded [emphasis added]:
Well, just so you understand, prior to their kind of crisis of confidence, if you will, Europeans must, uh, we in America hear about it every day, they must hear about it every morning and every evening of every day.
And is Greece going to go under? Is Italy going to go under? What’s going to happen to the euro? The banks are on stilts…it has echoes of what was going on here 2008 and 2009. Coming out of bankruptcy, [GM] did close a plant. There are only two plants closed in Europe. Fiat closed one and we closed one in Antwerp, Belgium. We laid off about 4,000 people and were were profitable for the first half of 2011 in Europe.
Now we, Ford , Fiat, Pugeot, Renault — they’ve all come out and said, ‘Yeah, we have profitability problems in Europe.’
And you’re right. We had to close 14 plants in the United States when we had our crisis.
We think we’re going to have to adjust our production levels in Europe over the next couple of years in order to get our house in order in Europe.
Watch the interview via CNN Money:
Akerson agreed with Lashinsky that the statement, “‘Adjust production levels’ is often a euphemism for closing plants.”
Akerson said that “we are in discussions with our stakeholders, our employees, our unions–” regarding the time-frame for these shutdowns and agreed that it’s “very difficult to close facilities in Europe compared to the United States.”
“And we are going to abide by our contracts but we have to at least start to get them in place so we hope that in the next two to three months we’ll be able to publicly articulate a plan that will get us back a shot at profitability.”
“And is eliminating a whole brand in Europe, such as Opel, is it an option the way you did in the United States?” Akerson was asked.
“I don’t think so. But you think about the United States, we had eight brands!”
He explained that since it restructured and eliminated some of its “historic brands,” GM has turned Buick into something of a success story. The CEO concluded by promising to do everything to make sure the German automaker Opel remains profitable.
Given the fact that even the CEO admits there are “profitability” concerns in Europe, why did the Detroit automaker, which still owes U.S. taxpayers approximately $25 billion, invest $400 million in France’s fledgling Peugeot?
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Comments (36)
discus02
Posted on March 15, 2012 at 10:53amIt’s either Ford or VW for me!
Report Post »hwyphd1
Posted on March 15, 2012 at 12:49pmFord, Audi,Kia and some old MGB’s
Report Post »db321
Posted on March 15, 2012 at 1:16pmHey Union Workers – how is Obama working out for you – the unions have less jobs in the US today than before Obama took office – plus the Unions just lost around 40,000 jobs that the Keystone would have provided.
I do have good news for the Unions – the thugs that run the Unions are showing record profits and raises in their incomes. If you don’t mind Union workers – I’m going to do the opposite of what Unions do so I can keep jobs and Business.
I don’t understand – supporting something that hurts employment. I guess I don’t have the brain capacity to become a Useful Idiot.
Report Post »Melvin Spittle
Posted on March 15, 2012 at 4:58pm“I do have good news for the Unions – the thugs that run the Unions are showing record profits and raises in their incomes.”
The unions are not worried. They are creating members by the tens of thousands overnight. In Michigan, Jennifer Granholm (Now on Current TV) made home-care givers union employees overnight to include families that are taking care of their disabled children. Union dues are still coming out of their checks even after court decisions stopping them. The same is happening here in California. That will come out to $15 per new involuntary union member. I did not know that unions are free to tax any industry it wants to.
Report Post »republic2011
Posted on March 15, 2012 at 10:45amIt‘s so easy to make bad investments when you know you can rape and pillage the tax payer when things don’t work out. Who cares about risk analysis. It is a forgotten art. Moral hazard is the new norm. Except for us working folks on a W2 and the small businesses. Yes, there, we have a completely different attitude. For us they increase regulation, don’t offer bailouts, and nudge us into being wardens of the State. Got to love this socialist country we live in.
Report Post »auburntaylors96
Posted on March 15, 2012 at 9:49amno true american should ever buy another Government Motors product….buy a ford, it’s now the only truly american made car. if you enjoy losing billions of dollars, subsidizing electric cars that explode and funding crooked, communist unions keep supporting GM.
Report Post »BobtheMoron
Posted on March 15, 2012 at 9:48amVolt is through. Halting production for a few months translates to “We can’t give that POS away and were not going to make anymore of them”. Big news about the temp closing will be no news about it remaining closed forever.
Report Post »david3755
Posted on March 15, 2012 at 9:42amWhat do you expect when you have union hacks and government no nothings running a corporation? Look for the union label and run the other way.
Report Post »hauschild
Posted on March 15, 2012 at 9:04amGM – they’ll be getting another bailout in a few years.
What an awful, awful company. Always thought they made inferior products back in the day, but now I wouldn’t purchase anything GM-affiliated if my life depended on it (or crappy Chrysler, either).
Just about everything this company is about is un-American from screwing the bondholders in favor of unions during the bailout, to the sham Volt, to the facade that this company is “coming back strong”.
Report Post »Bill Rowland
Posted on March 15, 2012 at 7:20amIt means nothing to GM or Sweet-Old-Barack, it’t only tax payer money. SOB encourages this kind of investment (?) as it fits into his plan to bankrupt us and disrupt the economy before declaring hinself King SOB the 1st.
Look at the flag with his picture on it and get used to it as that is the new emblem of the Kingdom of Obama.
OMG
Report Post »raderby
Posted on March 15, 2012 at 6:47amREDISTRIBUTION OF WEALTH to pay off France. Peugeot’s are crap cars – who would buy a French car? As far as diesel, lots of really good choices out there – German, and AMERICAN COMPANIES make them. REDISTRIBUTION my friends. More crooked crap from king Zero and Co.
Report Post »teebubba
Posted on March 15, 2012 at 5:03amIsn’t it wonderful when some lame reporter discovers why companies do mergers and acquisitions…
Report Post »Daveed
Posted on March 15, 2012 at 1:18amLike there is not a pattern there of laundering. How about the GOPS look into this one also.
Report Post »4truth2all
Posted on March 15, 2012 at 1:49pmJust what I was thinking … these people are not stupid, they are very cunning … these “bad investments” are on purpose … follow the money into the obama machine and those that “sell” him to the American public
Report Post »vcb-tn
Posted on March 15, 2012 at 12:31amya know, i had chevy back in ‘82, a ‘69 c-10 w/three on the tree, and a blazer in the ‘90’s, and now i am a “ford” man.
Report Post »mkurbo
Posted on March 15, 2012 at 1:03amThey should just move production of the (Obama) Volt over there, it will be a big hit in the “green” agenda enviroment of Europe. Obummer can bump up the credit to $45,000 (of the $46k price) and it will finally increase sales…
Report Post »vcb-tn
Posted on March 15, 2012 at 12:28amlike napoleon dynamite once (while drinking sour milk), said:…..”yes…!”.
Report Post »dadsrootbeer
Posted on March 14, 2012 at 11:40pmAnd the taxpayer is still waiting for the 25% plus still owed to them from GM.
Report Post »Gonzo
Posted on March 15, 2012 at 8:19amWe didn’t bail out GM, we bailed out the UAW. In return the UAW will bail out Barry in November…and we foot the bill. Great system as long as there is nobodty willing to lock you up for doing it.
Report Post »Thevoice
Posted on March 14, 2012 at 11:12pmOk I can see the connection now….We (print) another couple boat loads of money funnel it to the GM consumer credit arm and no doubt tonight on Greek TV there is a ad running for a sign and drive event down at um pas Olympus ..Then next month the government releases another report how the economy is growing and consumer confidence is ..BACK…here and in Greek town …All is well …
Report Post »Apple Bite
Posted on March 14, 2012 at 11:03pmSo…why in the hell are they being bailed out as soon as they come crawling on their damn knees? Again, GM buys up competition, does nothing worth noting with them, and the brand dies, while their base brand (Chevy) thrives. They’ve been responsible for closing on so many brands in the past 100 years, nobody should be surprised by this development.
Report Post »SpeckledPup
Posted on March 14, 2012 at 10:50pmmalignant sociopath narcissist obama’s auto industry [and unions] grab was about one thing= his list of Historical leaders he craves to Best.
this specific “GOVERNMENT MOTORS” FAILURE with obama grabbing [embezzling] TRILLIONS of OUR AMERICAN tax dollars was about besting Hitler and his “People’s Car.. the Volkswagon..
Report Post »that communist moron thought he could force Real America to accept and buy his fugly little egg weeble cars…the fiery battery death traps that cost $50k… and no place to ‘charge’ them up in REAL America, what a joke.. yes, the obama failure= the Volt Joke.
Darmok and Jalad at Tanagra
Posted on March 14, 2012 at 10:47pmThis is all a master plan by Trufant. They are secretly making all the US car companies buy all these other small crappy car comanies, then shut them down, then when all the US car comanies go bankrupt, in comes Trufant.
We will all be east germany, driving an overgrown lawnmower. But we will all be equal, just the Pigs will be more equal.
Wear clean underwear, Big Mother is watching.
Report Post »SpeckledPup
Posted on March 14, 2012 at 10:45pmtheer goes more ($400m) more of our hard-earned tax dollars. obama has basically embezzled all of our money.
$478,000.Plus for his UNNECESSARY little blowhard jaunt to the OH basketball game.. all of it was OUR TAX DOLLARS.
Report Post »EZDOZIT
Posted on March 14, 2012 at 10:28pmHalf the cars sold in Europe are diesels. We in the USA don’t have Hybrid-Diesel technology. GM could use this Peugeot technology to use here in america.Companies buy other companies all the time for their technology.It may still help us out here. It would really help our truck sells by improving there mileage.
Report Post »Mark0331
Posted on March 14, 2012 at 10:14pmOnly thing important in that whole article…$25 billion stilled owed to us taxpayers…and to think, I actually hear people on the left say GM is a success story…if a $25 billion debt is ‘success’, I hate to see what failure looks like…oh yeah thats right…Barrys’ presidency…
Report Post »trbilbo
Posted on March 14, 2012 at 9:59pmSo much like the mismanagement of SAAB GM…using US tazpayer borrowed money… will now take down Peugeot as well?
Report Post »Maybe the distraught, mislead, lied-to Europeans will impeach Obama for us since our weak kneed Congress doesn’t seem to recognise the need even when it is thrown in their faces.
I truly hope Peugeot find legs and recovers and divorces it’s current abusive parent soon!
Pro-Palin
Posted on March 14, 2012 at 9:54pmThats right Suck it Govy motors … could have gotten a new chevy truck with no mileage last year and instead bought a 96 ford on deathrow and fixed id it vs being a slave to the govy. May you and your union workers expire. ……. Thats my answer to cash for clunkers wich is all you make in my opinion. I would rather have a 1978 chevette than buy a new car from u .
Report Post »awiderview
Posted on March 14, 2012 at 9:50pmOn topic: Peugeot has very good diesel and hybrid-Diesel technology. Opel does not have much of a positive image. I think the business decisions are sound…but in very challenging times. I wish him and GM all the best.
Report Post »SHOWMESTATEGUY
Posted on March 14, 2012 at 10:20pmI smell a union worker.
Report Post »SHOWMESTATEGUY
Posted on March 14, 2012 at 9:48pmThe saying goes something like this. When you love someone, marry someone, you tend to take on the apperance of your mate.
I think Akerson looks like Obama. Wonder if they are happy in their marriage?
Report Post »TheObamanation
Posted on March 14, 2012 at 9:45pmNo worries … we can just print mor money
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