9:40 am, January 7, 2014
MORGAN Stanley has raised its estimate of the value of GM Europe – parent company of Vauxhall – but still says it’s worth a NEGATIVE $11.5 billion.
The investment bank increased the value of the company by $4.5bn, compared to its previous estimate of a negative $16 billion.
Forbes reports that Opel-Vauxhall lost $1.8bn in 2012 and is expected to lose a staggering $837m in 2013.
There is a glimmer of hope though. GM says it will break even – yes, even – by 2015 and Morgan Stanley analyst Adam Jones thinks the firm might just do it.
He said: ‘We estimate GM Europe will generate $400m of combined profit over the next four years. We have improved our forecast for losses at GMW further to $260m in 2014 versus our estimate of $837 million in 2013, with a positive margin of one per cent for 2015 and 2016.’
The news comes on the back of GM’s decision to pull Chevrolet out of Europe, which was announced last month.
