General Motors said that it would think about more cuts as the company is increasingly losing profit in Europe. However, the company recorded a 9.19 billion annual profit for the year 2011. The demand for GM’s vehicles in Europe has been falling repeatedly and the company has not been able to manage the capacity. “We are looking at everything in order to achieve a better break even point, a lower break even point and scale”, company Chief Executive Officer Dan Akerson said. Opel was one of the main losing points in GM’s otherwise comparatively success story.

General Motors was one company which almost escaped breakdown following the recession. Government funded reorganization helped it to climb all the way up to the top, with Dan Akerson on the board. It had to undertake several strict measures including job cuts and factory close downs to generate profit and to break even in the United States market. However, things weren’t attractive in Europeand Mr. Akerson wants that situation to change. General Motors has held talks with Karl Friedrich, Opel’s CEO and discussed about reducing the total costs and increasing the number of shifts in the factories from two to three.

There are too many factories for GM in Europe and all of them are bringing more vehicles, more than their capacity. Meanwhile, the company sees bright future in Asia, as they are thinking about expanding into China. It is also presumed that the company might be forced to move outside Europe for production of Opel models. Even though Opel has been a disaster in Europe, GM still plans to invest 11 billion Euros in it till 2014. For over a decade, GM has not recorded inspiring profit in the European market. They now plan to change this situation by introducing more cost cuts in Europe.

via Business week