Europe car sales rise as recovery "is more widely"

The recovery in the European Union led automotive industry until March, the latest figures show, with rapidly rising sales in Spain and Great Britain and a recovery in the mass market provide some need much acclaim for the region of car manufacturers.

Car sales in the European Union posting an increase of 10.6 percent over the same period increased for a seventh month in a row in March in the year 2013, registrations of passenger growth bringing new car in the quarter to 8.4 percent, the monthly survey the European automobile manufacturer's Association reported.

However, it was with almost 1.5 million vehicles registered, it began the second lowest result figure for March since the ACEA the creation of data for the enlarged EU in 2003. Fort he quarter, new car registrations rose 8.4 percent.

All major markets contributed to the March 10.6 percent rise, with Britain and Spain, or recording of 17.7 percent and 10 percent growth with sales growth for the quarter is 13.7 per cent in the UK.

France sales increased by 8.5 percent, Germany saw growth of 5.4 per cent and Italian car sales rose by 5 percent in March compared to the previous year.

Mike Tyndall, auto analyst at Barclays Capital, said that it was wrong to focus on the negative in today's figures.

"" If you want to be bearish, you can: it is the weakest March in a long time and the base will be harder, "CNBC, he said in a telephone interview."I think we have a more constructive point of view. We can see if we out to compensate for seasonal changes, which sees this as a pretty good result. We would also argue that mass market premium surpasses, is indicative of the recovery, which is still widely used."

Carlos da Silva, the head of the European vehicle sales at IHS automotive, agreed with Tyndall, in a note stating: "there are here and there some variants, although the basis for growth is widespread and as such limit the risk of a sudden reversal."

Tyndall said that UK sales growth in the car by "people seem be paid their credit card debt, real estate prices are rising, unemployment coming down." "All of this makes people a little happier about the prospects feel and that is the strength of the U.K.. underlying sales."

Marques on your

When it comes to car brands, Renault saw 19.6 percent growth between January and March of this year compared to the same period in the year 2013, with Ford group witnesses 12.8 percent growth and VW Group 8.4 percent. French PSA group experienced growth of 7.7 percent between January and March 2014 compared to the same period of last year.

Hyundai and Honda were the only car brand to see negative growth compared to the first quarter of 2013.

The automaker's results, Tyndall commented: "Renault, this is a highlight. You have done particularly well. You've got a few new products out there, but it is surprisingly strong.

"Peugeot is mixed. "Citroen is OK, but Peugeot brand is below par, is the entire market somewhat disappointing, as the Peugeot 308 European car of the year appointed."

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European car sales in sixth consecutive year of decline

Car sales rose 13.3 percent in December 2013 a year earlier, according to the European automobile manufacturer's Association (ACEA), in terms of the annual volume car sales decline in Europe but.

New car sales in December at the largest monthly year growth showed since December 2009, ACEA said on Thursday. The Group were warned, however, that in absolute terms, December in ten years with a total of 906.294 units, which registers the results of the third lowest for a month in Europe this month.

Furthermore, the ACEA showed latest figures that 1.7 percent, the car registrations, had rejected result of decline in 2013 from the previous year, the sixth year.

In terms of the annual volumes, that 2013 is the worst year since 1995 (when consisted of 15 countries of the European Union), and the worst since ACEA ever started the series in 2003 with the enlarged European Union (including the now 28 Nations).

The group said that results in European markets is clearly distinguished in the last 12 months. While the UK by 10.8 per cent, double-digit growth recorded new car sales and Spain booked a more moderate recovery of 3.3 percent countries such as Germany and France, a decline of 4.2 percent and 5.7 percent or booked.

Overall, the EU market recorded a total 11.850, 905 new cars or 1.7 percent less than in the year 2012.

Carlos because Silva, Manager for European vehicles global said sales forecasting at IHS insight, CNBC, that although the December sales increase was "quite an achievement" given the economic and social climate in Europe "must also recognize how deep in absolute numbers, these volumes are: the lowest level since 1995, the ACEA says."

"The misunderstanding would be taken into account, that is from now after four months of continuous growth, the EU market out of the Woods and back on the track, as if nothing happened would," he told CNBC on Thursday.

"The recent good results have welcome but they were so well actually? After years of collapsing sales, backlog has definitely begun sharing in 2013, but there was also a fair amount of artificially fed demand, "he said, citing sales growth u.k.-market as" due to the very good negotiations conditions "or Spanish growth thanks to country of car scrapping.

"Located in the year 2014, the EU market to come back..."But at the same time, we would point out that the recovery road could be very slow and staggered. Like the fact that we expect to get that car to 2008 volumes volumes again only through the next decade, ", he warned.

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GM has a U-turn on Chevy in Europe

After several years and hundreds of millions of dollars spent, Chevrolet wants a popular mass market brand in Europe makes General Motors reversed course.

The company on Thursday that retiring is Chevy vehicles in Europe as its no. 1 mass-market brand and will make his primary mainstream line of Opel.

It's the kind of movement that makes sense, if you are the numbers. At the same time, it raises more questions about GM long slog in Europe--where it has lost money for the last 14 years.

General Motors plans cars and crossovers in Europe to the setting of the most Chevy sales until the end of 2015, said the company. It will still sell, Chevy's iconic models, such as the Corvette, but mainstream cars like the Cruze under the Chevy badge is no longer offered.

Instead, the company in marketing and plans focused on its long-standing European brands Opel and Vauxhall. Opel sold five to one in Europe is better than Chevy, according to sales figures.

Wall Street reaction was divided, when former GM CEO Rick Wagoner 2005 would announced that Chevrolet will the automaker of the primary brand worldwide.

There was applause for the decision on a page. Some thought that will get it how GM its marketing energy use the mainstream flagship would allow.

"On the other hand many what happens with Opel?" asked Europe has long been in a fragmented market--with more brands than in the United States, see a continent with declining revenues in the competition. But Opel so Wagoners choice has it ditch for Chevy not easily would have been built up a strong following in decades.

GM tidying up of the mass market to a relief battle between Chevy and Opel fighting face each other in a crowded and competitive marketplace were.

With this new decision, it would seem that GM finally to admit is his plan to the push Chevy in Europe failed.

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VW is pushing expansion overseas is Europe hurts

FRANKFURT, Sept 11 Reuters)-Volkswagen takes more steps to the their business activities reinforce the pinch of increasingly like the German carmaker feels stability demand in ailing European markets.

VW, about 60 percent of the Group sold vehicles outside their European homeland, is in China and already adding Mexico to capacity.

Production group Chairman Michael power of the Reuters news agency at the Frankfurt motor show on Wednesday, which also plans production in fast-growing Southeast Asian markets, setting up one of the few remaining gaps in its huge global factory network, VW from 102 facilities close.

"Certainly an active role in the region will we will in the next few years," said power, who sits eight-Member Board of Directors on VW, in an interview. "We are currently very active on the way in these countries."

Europe's largest carmaker a first 200 million euros ($265,33 million) this year investment to build a car plant in Indonesia known can give, a Minister in the Indonesian Government has in the past month, citing the location of Cikampek, West Java.

Power rejected an opinion on which country VW would finally get and said decisions on brands and products were not taken yet.

Automobile manufacturers around the world rely on emerging markets for long in the midst of a crisis recession-hit Europe, where pending sales on a low two decades are.

The Wolfsburg multi-brand Automotive Group, which is still missing a vehicle assembly plant in the Association of Southeast Asian Nations (ASEAN) Group of countries, has a goal to overtake Toyota and General Motors that not no later than 2018 become the world's largest automaker.

The ASEAN group consists of Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma, Cambodia, Laos and Viet Nam.

Separately, the German giant is considering to expand a start of commercial vehicles in the United States in the future as part of steps to his namesake core brand No. 2-car market in the world.

Commercial pickup trucks and vans like VW Caddy type model "certainly represents opportunity" for the United States, Jonathan Browning, CEO of VW US business of Reuters news agency, in a separate interview, referring to the success of the Ford Transit Connect van.

"There are preliminary discussions (with VW Wolfsburg-based management) but no definite plans at the moment," Browning said.

VW wants to boost its presence in the United States, until 2018, when it aims to snatch viewed 800,000 VW brand and 200,000 Audi brand sales the global sales Crown.

Yet Browning made it clear that rather than in addition to VW focus on best use of the potential of the band boosting models such as the compact Jetta sedan, Passat mid-size sedan and the compact SUV Tiguan would now offers in the United States, for the company.

"The immediate future is the best we have the vehicles plus CrossBlue B-SUV,", said Browning, a seven-seater concept car VW on the Shanghai Auto Show this year presented.

"The European market fully back his former strength may take years", said Stefan Bratzel, head of the center of automotive management think tank in the vicinity of Cologne. "Overseas (car) markets will account for a large part of future growth."

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GM shares China of the international units, hires former Volvo CEO

DETROIT, Aug 2 Reuters)-General Motors co said on Friday that it has divided critical activities in China by its international units, which is now run by the former Chief Executive of the Swedish automaker Volvo.

Tim Lee, who ran international operations unit for almost four years, was appointed Chairman of GM China and retains its position as the global Chief of manufacturing.

The trains allow more about China, the world's largest automotive market, as well as other rapidly growing and emerging markets focus, the company said GM.

"It will be in a better position to take on the competition and even greater use all opportunities that are available in the international market place" GM spokeswoman Katie McBride said.

GM said that Stefan Jacoby, a former head of Volvo, who worked also as an Executive at Volkswagen AG, as the head of the other international operations will do. This region comprises 100 countries and territories in Africa, Asia, Europe and the Middle East.

Jacoby, 55, begins his job Monday and will report to GM CEO Dan Akerson.

Jacoby left Volvo in October 2012 after the company missed its revenue targets, including aggressive growth plans in China. Sources said at the time, Jacoby, an important meeting and the strategy Board had clashed with the Deputy Chairman at Volvo.

Jacoby a slight stroke in September 2012, but GM officials said he is fit to international business activities of the company run and turned it off to discuss his health. Volvo said Jacoby left, had his condition nothing to do with the decision to remove him.

Jacoby is the latest former VW Manager GM join.

In January, GM VW named Karl-Thomas Neumann its money losing Opel unit in Europe to drive. Five months later developed GM Tim Mahoney, a former VW Executive as head of global marketing. Last summer, Michael Lohscheller VW U.S. auto manufacturers turned to Opel chief financial officer.

Akerson wants Lee to China, where GM is the market leader, and start on the product of the company's aggressive plans to focus.

GM has more than 60 vehicles worldwide starts this year and in the year 2014, including the recently introduced Chevrolet Silverado and GMC Sierra full-sized pickups, are the main profit generators.

To register for 12 Bob Socia, President of GM China, continue to Lee, two wholly-owned foreign companies, joint ventures and more than 55,000 employees in China is responsible.

"Tim is crucial to building on our success in China and to ensure proper vehicle starting around the globe", Akerson said.

China will still be included in GM coverage is international activities when it comes to financial, however, McBride said.

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GM acquisition of the assets of the allies in Europe and Latin America

Tom Kirsher, AP
Tummelson-GM said Wednesday that it ally to buy financial operations in Europe, China and Latin America, as it is trying build a global finance unit to low-interest car loans and increase sales.

The auto giant U.S. credit business, GM financial, will pay $4.25 billion for the Allied assets, to help better the markets compete in GM, where other car manufacturers already have their own credit. Car manufacturers with the own finance arms often subsidize loans and leasing to increase sales.

The offer, which must be approved by regulatory authorities, is expected next year phased to close. Ally, ally over the carrying amount of the assets, a bonus of $550 million the $3.7 billion in the third quarter was maintained, said in a press release.

Ally, who was GM financial arm until it was taken by the U.S. Government in the 2008 collapse of the industry, banks is the sale of assets to money to repay of the Government for a $17.2 billion rescue package. So far, ally has paid back $5.8 billion, so that a balance of $11.4 billion. The company took advantage of GMAC financial services.

The move by the recovery of a unit that was once highly profitable before the collapse, GM will help Argus said research analyst Bill Selesky. They grow in countries where the middle class is growing, also helps GM, he said.

"they believe that future growth will be largely determined by the growth of emerging countries." You think, this is where the future of car loans, higher growth regions,"he said.

GM give $2 billion to GM financial to purchase, the car maker said in a statement. The deal includes the operations of the allies in Brazil, Mexico, Colombia, Chile, Germany, France, Italy, Belgium, the Netherlands, Sweden, Switzerland and Austria. Moreover, an ally of the 40-percent stake in a Chinese joint venture car financing companies.

The GM financial assets to approximately 33 billion $ double and liabilities, including debt rises to $27 billion by about 12 billion $ today, GM said in the statement.

"GM is entering the most aggressive rollouts of new vehicles in its history, and this acquisition will make us a more formidable competition that is all over the world, to provide competitive financing for our customers and dealers," said Chief Financial Officer Dan Ammann.

In exchange for the bail-outs for ally, the U.S. Government has 74 percent of the ordinary shares of the lender plus $ worth of 5.9 billion of preference shares.

Ally last month its Canadian operations at the Royal Bank of Canada for $4.1 billion and a Mexican insurance business for $865 million sold. The GM deal with 9 billion have allies $ in additional cash. It could use the money to buy back the preferred shares, but Gina Proia ally spokeswoman said that no decision has been taken to repay the Government.

Privately held allies has a first public offer, more money get back looking for the Government, but that has been put on ice until conditions improve the stock market.

The acquisition by GM a further step in the direction of is its global financial arm that a profit-center before the meltdown 2008 was mortgage. At GMAC, GM sold a 51-percent stake in 2006 when it was cash-starved. The new owners, under the leadership of private-equity firm Cerberus Capital Management LP, ran into trouble in 2008 with bad mortgage loans and had to be rescued by the Government.

Ally Financial Inc. now focuses on its U.S. car loans and bank holding company company. In may, his mortgage, loan and service subsidiary, residential Capital LLC, or ResCap, applied for creditor protection, cancellation of ally of ties to the troubled unit. Toxic mortgages from the ResCap caused the most allies of the financial problems. A tender offer of $3 billion from a unit Ocwen Financial Corp. ResCap has since taken over.

GM has nearly a 10 percent stake in ally.

In the third quarter of ally a $384 million net profit, reversing a loss from a year ago, before mostly because they have no losses from ResCap.

Verbundeter business continue to be strong, said global automotive services with the loan it increase and improvement in the third quarter despite the increasing competition amongst the lenders for car loans funded.

Meanwhile, retail deposits his allies banking division rose by 22 percent, and customer accounts grew by 24 percent, the company said.

October paid back ally $2.9 billion of debt that it under a government program the hundreds of billions of dollars in U.S. Bank issued, secured debt during the financial crisis. The program is independent of the rescue operation. Ally has in the past month that it intends, in December guaranteed to repay the remaining $4.5 billion through the Federal Deposit Insurance Corp. program.

AP business writer David Koenig in Dallas contributed to this report.

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Ford quarter profit slips on European losses

By the Associated Press

Ford's profit in the third quarter allowed to 1 percent to $1.63 billion, such as European losses North American record profits flooded.

Ford Motor Co. said Tuesday its net income per share 41 cents, unchanged from the period from July to September a year earlier. Before special items it earned 40 cents according to analysts interviewed by FactSet, to beat Wall Street forecast of 30 cents.

Ford's sales fell 3 percent to $32.1 billion as vehicle sales in Europe and South America. The company exceeded Wall Street revenue forecast of $31.5 billion mainly due to North America, where sales jumped 8 percent to $19.5 billion, thanks to higher prices and strong sales of higher-margin trucks and SUVs.

A record worthy of Dearborn-based Ford $2.3 billion in North America. Chief Financial Officer Bob Shanks pointed out that this was the third quarter in a row, the company has more than 2 billion $ in the region and reported an operating margin of 10 percent or more. Ford's North American operating margin was 12 percent in the third quarter from 8.6 percent a year earlier.

"For me the story is not only the results but the consistency of the results," he said.

The company lost $468 million in Europe, where sales due to the troubled economy have fallen sharply. Last week, Ford announced a plan to close three factories in Europe, where it expects more than $1.5 billion this year and next year to lose.

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Chevy rising in Europe as Opel struggles

Frank Augstein / AP

Karl-Friedrich Stracke, CEO of Adam Opel AG, sits inside the new Opel Mokka. He is struggling to restore the GM unit to profitability.

By Paul A. Eisenstein, msnbc.com contributor

The products were nearly an afterthought when Opel opened its news conference at the Geneva Motor Show last week.

Any other year, a new model like the Mokka crossover or Astra OPC would have garnered the spotlight. But when the German automaker’s new CEO Karl-Friedrich Stracke took the stage the focus was more somber  as declared his goal: “to return our European operations to sustainable profitability.”

He’d better -- and soon.  Opel ran up $700 million in red ink last year, detracting from parent General Motors, which still posted a  record $7.6 billion in profit for 2011.

Turning things around at Opel has proved far more elusive than anyone expected.  Stracke’s predecessor Nick Reilly was summarily “retired” a few months back after failing on his promise of delivering at least a break-even at the European subsidiary.

A frustrated GM has tried one option after another in recent years, hoping to turn the corner on Opel’s problems.  It has cut capacity, rolled out a flood of new products and even considered selling a controlling stake in the unit shortly after emerging from its own 2009 bankruptcy.

Now the automaker has inked an expansive alliance deal with erstwhile rival PSA Peugeot Citroen.  The two new partners insist they can not only reduce costs but also introduce an assortment of new products and powertrains that could give them a competitive edge in the overcrowded European market. But considering the Continent’s worsening economic crisis -- never mind Opel’s recent history -- skeptics abound.

“They’ve got to take out a lot of mass,” said analyst Joe Phillippi of AutoTrends Consulting, referring to Opel’s excess capacity, bloated workforce and out-of-sync cost structure.  “But any savings are likely to take time.”  At best, he cautioned, the fruits of the new alliance won’t be ripe for 18 to 24 months -- if at all.

Two decades ago, Opel was one of Europe's automotive powerhouses.  The brand was locked in a battle with leaders like Volkswagen and Ford but generated reasonable revenues and was considered a likely spearhead for GM as it opened emerging markets from Brazil to Russia and beyond.

But when GM bid to build a new plant in China, regulators there suggested the maker go to market instead with the Buick name -- reviving a brand that was a favorite of China’s last emperor as well as communist leader Zhou Enlai.

Meanwhile, as Opel began running into problems its expansion plans were scaled back, and GM shifted focus to Chevrolet, a brand long dominant in the Americas.  It even brought Chevy into Europe, using the brand to market its lower-priced, Korean made models.

Ironically, while Opel has steadily lost ground, Chevrolet has become one of Europe’s fastest-growing marques, setting one annual record after another.

Some thought Chevrolet might even replace Opel if GM had gone through with a sale of a controlling stake in Opel.

In the end, Opel stayed in the GM family, and the plan is for peaceful coexistence, insists Susan Docherty, president and managing director of Chevrolet Europe. 

“There’s absolutely room for both of us,” she insisted in an interview, noting that despite its fast growth Chevy Europe sold just 206,000 vehicles last year, barely 20 percent of Opel's volume.

Still, there have been plenty of rumors and reports in recent months that GM might again try to find a buyer for Opel. GM CEO Dan Akerson has repeatedly denied a sale is on the table. And the Peugeot alliance reveals an alternative strategy.

The two makers will cooperate on a variety of projects, including joint component and part purchasing that should shave costs by enhancing economies of scale.  Peugeot will provide new and more efficient diesels Opel can use -- critical in the diesel-friendly European market.  And the partners plan to develop new powertrains and product platforms that should reach market sometime after mid-decade.

“It’s very clear we’re looking for synergies,” said Opel chief Stracke in an interview, but he acknowledged it will take time to pull things together.

Stracke cautioned that the alliance won’t solve anything. Notably, “it’s not set up to fix anybody’s capacity problems.  Peugeot needs to fix theirs and we need to fix ours.”

He hinted that Opel is studying its options, with many observers expecting some major announcement in the coming months. That would follow previous steps that have already reduced Opel’s capacity by 400,000 units annually.

New cuts won’t be easy, especially at the maker’s highest-cost plants in Germany, where it is subject to restrictive labor laws -- and where union leaders have significant say in management decisions.  But a recent shake-up in the leadership of union IG Metall could provide an opportunity for change.

Jim Hall of 2953 Analytics is skeptical that the Peugeot alliance -- or even further production cuts -- will solve Opel’s problems.  “The more serious problem,” he says, is the maker’s weak image among European buyers, “and only product can solve that.”

That’s where the Mokka and Astra OPC come in -- along with the new Ampera, the plug-in hybrid sibling of the American Chevrolet Volt (which also is being sold in Europe).

Both Ampera and Volt got a much-needed boost last week when a jury of journalists declared them jointly the European Car of the Year. Stracke said that even before the award Opel had lined up 7,000 advance orders for Ampera, which only went on sale last month.

But it’s going to take a lot more volume than that to fix Opel’s problems. And while the new models and the new alliance will likely help, it’s anyone’s guess when GM’s European arm will finally stanch its bleeding.

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Costs, Europe Ford make a profit by product

Ford Motor Co. recorded a lower than expected in the fourth quarter profit Friday due to the disappointing results outside of North America and soaring commodity prices costs.

Earnings Ford operating profit fell to $1.1 billion, or 20 cents per share, of almost $1.3 billion, or 30 cents per share, a year earlier.

Analysts, expects an adjusted earnings of 25 cents per share, on average according to Thomson Reuters I/B/E/S. Ford shares in the news fell.

Ford's profit hurt costs higher raw material prices, unfavorable exchange rates and poorer results in Europe, Asia and South America during the quarter. $2.3 Billion for the year to some of the $2.2 billion were Ford's product costs forecast.

"We saw worsen the external environment and really affected most regions except North America, and then we saw something bigger than we expected impact of raw materials, currency, and also the Thai floods," Chief Financial Officer Lewis booth told reporters.

Loss deepened Ford's losses in Europe during the quarter to $190 million compared to $ 51 million a year ago. To date, said that Europe would remain "difficult" for some time. In 2012, Ford expects that growth in the region will be dampened by the debt crisis and strong measures.

Ford in the face of increased competition in South America, where there is an operating pre-tax profit of $108 million down from $ 281 million a year earlier reported.

Production losses due to the floods in Thailand hurt its results in Asia compared to where quarterly loss of 83 million $ a profit of $23 million a year ago.

Ford reported a net profit in the fourth quarter of $ 13.6 billion or $3.40 per share, driven by a one-time tax gain of $12.4 billion. A year before Ford posted net income of $190 million, or 5 cents per share.

The higher net income was the result of a change in accounting policy, the Ford said reflects confidence in the long-term profit Outlook. The one-time gain led net profit of $20.2 billion the highest profit since 1998 to a year-round.

Copyright 2012 Thomson Reuters.

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Europe drags down General Motors' 3Q profit

DETROIT — The fragile European economy is dragging down General Motors' profits, forcing its management to look harder for cost cuts and ways to boost revenue in the struggling region.

GM said Wednesday that its third-quarter net income fell 15 percent from a year earlier, pulled down by losses in Europe and South America and weak earnings in all areas except North America and China.

The company's shares fell over 10 percent to $22.31 Wednesday as GM executives were backed off an earlier prediction that the company would break even before taxes in Europe this year.

Europe faces a financial crisis and could slip into recession. Growth is slow is several key nations. Italy, the region's third-biggest economy, is bucking under the weight of government debt. Greece faces default unless it can accept a new debt deal, and the region also is dealing with high unemployment, stingy bank lending and declining exports. General Motors Co. is among the first U.S. corporations to forecast lower earnings due to the problems.

GM CEO Dan Akerson told industry analysts that the company's performance in Europe is due in part to slower sales "which itself is a manifestation of Europe's economic morass." He said the results in Europe and South America are "not sustainable and not acceptable" and said GM must look for more ways to control costs. But Akerson stopped short of giving specifics.

Sales in Europe are about 18 percent of GM's 2.2 million global total, but they are expected to weaken as the economy slows in the fourth quarter.

Citi Investment Research analyst Itay Michaeli said other automakers have hinted at difficulties in Europe, but GM was sounding a louder alarm based on the third-quarter performance.

Michaeli said he thought GM would have been able to remove more costs in Europe by now. Third-quarter costs at GM Europe were about even with a bad quarter a year ago, so that means more cuts will have to be made, probably by cutting factory capacity with plant closures, he said.

"These guys just aren't going to sit around and let Europe lose a bunch of money," he said. "I imagine they're working on plans to rightsize capacity to make money on lower (sales) volume."

In the third quarter, GM's net income fell to $1.7 billion, or $1.03 per share, compared with $2 billion, or $1.20 per share, a year earlier. The quarter's figures also included $200 million in dividends paid on preferred stock that didn't exist a year earlier.

GM posted a pretax loss of $292 million in Europe. Its profit rose slightly in North America to $2.2 billion, but earnings at its international operations, including China, fell 29 percent to $365 million. South American operations also swung to a loss of $44 million for the quarter.

Without the loss in Europe and the preferred stock payment, GM's net income would have increased.

Chief Financial Officer Dan Ammann said GM had a solid quarter, but needs to improve its profit margins in all regions. The company also needs to take better advantage of its global scale, building the same cars for all markets to cut engineering and research costs, he said.

Ammann said that in Europe, GM will follow the formula used to turn around the company's North American operations. GM cut its break-even point in North America by closing 16 factories since 2008. It also won concessions from the United Auto Workers union, and it rolled out new vehicles that are selling well. But Ammann wouldn't say for certain if plant closures are coming in Europe.

"There's nothing that's off the table," he said.

Ammann said the company has made significant progress in Europe and is more than $1 billion ahead of last year's pretax earnings.

Cutting costs appears to be a bigger challenge than trying to sell more cars in the region. It's difficult for GM to close plants and cut staff in Europe because of strong unions and laws that protect jobs.

European sales rose 4.6 percent during the third quarter. But the growth rate was about half the 9 percent increase GM reported worldwide.

In South America, Ammann said GM is revamping an aging car and truck lineup to try to boost sales. It also offered buyouts to employees that resulted in a 4 percent reduction in the work force there to deal with cost inflation, he said. GM is coming out with nine new vehicles in the next year in South America, including the Chevrolet Cruze compact and a subcompact named the Cobalt, he said.

Ammann said GM plans actions companywide to improve profit margins. Its profit margin, or pretax profit as a percentage of revenue, is around 6 percent, a full percentage point lower than its closest global competitors, Volkswagen AG and Ford Motor Co.

While the company plans to cut costs further, it mainly will boost profit margins by increasing revenue, he said.

"You can't cost-cut your way to prosperity in the business. You've got to grow the business, get the right vehicles on the road," he said.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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