General Motors is making progress in restructuring its money-losing European operations and holding constructive talks with German labor unions, CEO Dan Akerson told shareholders Tuesday.
GM’s European unit has been losing money for the past 12 years, and like other automakers, faces grim prospects as much of the region slips toward a recession. The company has been trying to restructure the Opel and Vauxhall brands, which have too many factories and workers for the number of vehicles they sell. Akerson ranked Europe at the top of GM’s problems, but said the company has reached restructuring deals with labor unions in Poland and England and talks are going well with German unions. The company is discussing factory capacity cuts across Europe, Akerson said.