From Russia With Loss: Pullout Hits GM Korea Tough

93
Source:   —  April 13, 2016, at 4:45 PM

In addition to the one-time writedown for the pullout from Russia latest year, the automaker also blames the loss on weakening conditions in emerging markets, which have taken on greater importance since GM Korea stopped selling Chevrolets in Europe three years ago.

From Russia With Loss: Pullout Hits GM Korea Tough

Crippled by Russia’s termination of manufacturing activity, GM Korea reports a record nine hundred eighty-six billion won ($861 million) loss in two thousand fifteen.

In addition to the one-time writedown for the pullout from Russia latest year, the automaker also blames the loss on weakening conditions in emerging markets, which have taken on greater importance since GM Korea stopped selling Chevrolets in Europe three years ago.

The automaker’s wholly-owned Chevrolet Europe subsidiary had lost money since its formation, although it was the conduit through which more than eighty percent of GM Korea’s vehicles were sold.

Abandoning Europe at the time was seen as an eventual financial benefit, but the move was negated by the cost of the Russian pullout.

GM Korea’s two thousand fifteen net loss was 2.8 times greater than the net loss of 353.5 billion won ($308 million) recorded in two thousand-fourteenth. The two thousand fifteen operating loss of 594.4 billion won ($519 million) was four times greater than the operating loss recorded in 2014.

The company reported 2015 income of 11.9 trillion won ($ten.4 billion) and global sales of 622.000 vehicles.

The destitute earnings performance contrasted with GM Korea’s upbeat first-quarter sales results.

GM Korea reported global sales of 149.948 vehicles from Jan through March, up 3.2%. Of those vehicles, a high percentage were the diminutive, low-margin new-generation Spark.

The Spark sells domestically in the 10 million-15 million won range ($8.700-$13.000).

In March, Korean sales of 16.868 vehicles bolstered global sales so that they showed an expand of 3.4 percent with 56.144 units. However, exports were down 4.4 percent with 39.276 units sold.

READ ALSO
Aluminum F-150 Garners More Safety Honor

Aluminum F-150 Garners More Safety Honor

Ford and the Insurance Institute for Hwy Safety announced the two thousand sixteen Top Safety Choose award for the F-150 SuperCab variant in statements released early Tuesday.

81
Nation's Largest Bank Reports 6.7 % drop in Profits

Nation's Largest Bank Reports 6.7 % drop in Profits

The bank'south net income fell to $5.52 billion in the first quarter ended March thirty-one, from $5.91 billion a year earlier.

84
Yuri Gagarin became first man in space fifty-five years ago

Yuri Gagarin became first man in space fifty-five years ago

In Russia, April twelve is known as Cosmonautics Day. During a United Nations Common Gathering meeeting in two thousand-eleventh, this day was declared International Day of Human Space Flight by sixty countries.

67
National Weather Service finally does far with all-uppercase forecasts

National Weather Service finally does far with all-uppercase forecasts

The agency said this week it'south doing far with its "all uppercase, all the time" reports in favor of, you know, normal communication. In case you weren't familiar with the format, every time you wanted to looked up, say, how much rain'south in the forecast,...

81