General Motors Co.’s share price down, European Opel AG unit on the way of breaking even before the target date in 2016

The European unit of General Motors Co. – Adam Opel AG, which has been the largest problem of the company for years, seems to be close to breaking even before the predetermined schedule in 2016. The Chief Executive Officer of General Motors Co., Mary Barra felt relieved after announcing the news, as the company is going through some difficulties due to an extensive vehicles recall. The withdrawal is expected to reduce General Motors profit for the first quarter of the financial year by 1.3 billion dollars.

For a few years the European division of the company posted constantly decreasing sales, as well as serious financial losses. General Motors Co. took some steps in order to improve the situation and revive the Opel AG unit. The company made a team of specialists, headed by Mr. Karl-Thomas Neumann, a former Chief Executive Officer of Volkswagen AG. General Motors Co. also considered shutting down one of the companys plants located in Germany, launching 23 new models by 2016 and making larger than 6-billion-dollar investments in the region.

The companys efforts invested in bringing a new life to its Adam Opel AG unit seem to be working now, considering the fact that Opels sales stopped decreasing last year. In addition, the sales of the German Opel and the British Vauxhall brands have risen by 3% in the first two months of 2014.

At the same time, the problems of General Motors, which are associated with recalls of a large number of vehicles is still on the agenda. Ms. Mary Barra spent most of the time after being appointed as a CEO of the company, dealing with the consequences from the vehicles withdrawal. Ms. Barra now expects to be presented two essential internal reports that will provide her with more information about the compensations needed and blame assessment.

General Motors Co. fell 4.11% on Friday, and its one-year change is +7.44%. According to the information published on CNN Money, the 18 analysts offering 12-month price forecasts for General Motors Co. have a median target of 45.50, with a high estimate of 50.00 and a low estimate of 32.00. The median estimate represents a +42.50% increase from the last price of 31.93.