General Motors Co. (GM:US) is making progress with efforts to return the European business to profitability.
“Although I am absolutely dissatisfied with the business figures, I see a lot of signs for progress,” Karl-Friedrich Stracke, head of the Opel unit, said in a letter to staff today on the company’s earnings.
The European business, which mainly comprises the Opel and Vauxhall brands, posted an adjusted operating loss of $256 million in the first quarter. Stracke said a difficult business environment with lower sales, especially in January and February, was the reason for the loss. The market situation improved in March, he said.
Opel exceeded its own internal plans for reducing material costs in the first quarter, Stracke said.
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