Fleet News

Pricing problems cause GM loss

MODEL changes and a hugely competitive pricing environment contributed to third quarter losses at General Motors Europe, which includes Vauxhall.

The world's number one vehicle manufacturer has reported third quarter post-tax earnings of $829 million (1999: $877 million) and blamed 'competitive pressures' mainly in Europe for the decline. The company said results were further affected by the launch of the new Vauxhall/Opel Corsa, the company's highest volume model. 'This start-up combined with overall unfavourable country mix and intensifying price pressures hurt the European results,' said the company which saw European third quarter profits swing from a $32 million to a $181 million loss. 'GM Europe is facing a very competitive pricing environment and is expected to remain in a continuing significant loss position in the fourth quarter.' Meanwhile, General Motors Acceptance Corporation, which owns Interleasing in the UK, reported record third quarter results.

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