Posted by: Joshua Bergman, Feb 15, 2017
In the general transactions of business, automobiles have always a highly popular product. No matter where people go, there are always cars being purchased and used. They are worldwide manufactured goods that are used daily. Like any other product, car manufacturing is a business, and not all businesses work out in the end.
Recently, General Motors, a popular car manufacturer, reported that they are leaving the European market. In this leave, they would be selling their line of Opel cars to a French producer. While General Motors believed to be profitable in Europe, they claim to be doing “mediocre at best”. In the past two years, General Motors’ European division reported a $1.069 billion loss. Even though this may seem like a huge loss for the company, they are still thriving in the United States. Since the beginning of automobile production, General Motors has been around and will continue to be.
Whether this is beneficial for the company or not is still up in the air. While GM is satisfied with selling while “Europe is steadier”, the question is whether they should sell or not. In the overall picture, leaving Europe and selling Opel seems like the most beneficial for the company. Despite leaving Europe after 90 years, they are and will still be a huge business in the United States.
Original Story: “General Motors, Considering Exiting Europe, Talks About Selling Opel” NYT, Feb. 14, 2017