16 February 2012
Last updated at 08:49 ET
GM will pay profit-sharing bonuses to staff
US carmaker General Motors made record profits in 2011 but unveiled huge losses in its European operations.
The firm made a profit of $7.6bn (£4.85bn) over the year, up 62% from 2010.
However, it lost $700m in Europe, which includes its UK Vauxhall plants in Ellesmere Port and Luton, and made a $100m loss in South America.
The firm, which faced bankruptcy two years ago, saw sales rise 7.6% last year to more than 9 million vehicles.
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Analysis
The widening losses at GM’s Opel unit, which also owns Vauxhall, will require a hasty response from the company’s new chief executive, Karl-Friedrich Stracke.
Costs must be cut quickly and sharply to save Opel from going under.
At this stage, abrupt plant closures or further job cuts are not part of the discussion with the unions, according to Mr Stracke, but it is
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