Dump Opel and Vauxhall – that was the blunt message to General Motors from analysts at Morgan Stanley.
They point out that GM’s decision not to sell its European division three years ago has cost the US carmaker 12.5 billion euros and suggested a sale could lead to a 50 percent increase in GM’s share price.
Opel Vauxhall has not made a profit in 13 years.
The Morgan Stanley experts said it “represents the single biggest threat to GM’s long-term financial health and sustainability”.
However GM remains committed to its European division: “Despite the tough environment for the automotive business in Europe, we believe we have an opportunity to turn the Opel-Vauxhall business around and bring it back to long-term profitability,” said GM spokesman Jim Cain.