GM Europe turns in losses of £1.1bn

General Motors Europe (GME) turned in losses of $1.8bn (£1.1bn) in 2010.

In the fourth quarter GME had a loss before interest and taxes of $600m, an improvement on the loss of $800m in the same quarter a year ago.

The number of employees fell to 40,000 from 50,000 a year earlier largely due to the sale of Saab, restructuring initiatives in the UK, Belgium, Germany and Spain and the transfer of employees in Russia and Uzbekistan to another division.

In Europe Opel Vauxhall said it was adding a new convertible as part of its €11bn investment plans announced a year ago. It will be built at the Gliwice plant alongside other Astra models.

GM’s European results contrasted with GM’s worldwide performance in 2010 where it enjoyed its biggest profits in a decade, according to its first annual results since it emerged from bankruptcy.

The company posted a $4.7bn profit on turnover of $136.7bn after boosting worldwide production to 8.7m vehicles. It was the most profitable year for the firm since 1999.

“Last year was one of foundation building,” said Dan Akerson, GM chairman and chief executive officer.

 “Particularly pleasing was that we demonstrated GM’s ability to achieve sustainable profitability near the bottom of the U.S. industry cycle, with four consecutive profitable quarters.”