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Vauxhall parent firm worth negative $11.5bn

Time 8 years ago

5ff94bc5-1511-471a-b96e-5f414e26009fMORGAN 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.

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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.

 

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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