GM's Opel posts big loss

January 16, 2002 Posted: 1608 GMT

LONDON (CNN) -- Adam Opel, Europe's third biggest car maker, on Wednesday posted its biggest operating loss in history.

General Motors's ailing European business reported an operating loss of  674 million ($594.4 million) in 2001, from 500 million a year earlier. But the Frankfurt-based company said still aimed to break even in 2003.

Opel said that with its restructuring programme, which includes 2,500 job cuts by 2003, "it should be possible for us to reduce the operating loss in 2002 from 2001."

"The company hasn't been quick to respond to the latest trends," John Lawson, an analyst at Schroder SSB, told CNN . "Peugeot and Volkswagen are making diesels cars. Diesel is a sector Opel is not strong in."

General Motors (GM: down $0.11 to $49.85, Research, Estimates), the biggest U.S. automaker, on Wednesday said its profits tumbled 58 percent in the fourth quarter, beating analysts' forecasts, as zero-percent financing helped sales but cut into its revenues.

For the quarter ended December 31, the world's largest automaker said it earned $255 million, down from $609 million a year earlier.