General Motors aims to fix European problems this year

World’ largest automobile manufacturer General Motors has said that they plan to reverse six years of losses in Europe in 2006. They are aiming at breaking even this year or even better post a profit in the next financial year.

The company plans to improve upon its financial position in the European automobile market by launching a couple of new exciting models. They are also planning to cut around 12,000 jobs. General Motors last posted a profit in this market in 1999.

They have however narrowed down their losses last years to around $375 million from $742 million and managed to keep their market share at around 9%. GM’s Chief Executive Officer Rick Wagoner said in a statement: “We hope to see improvements on the financial side, but this is a road with more than one or two steps”.

GM faces challenges from other automobile giants like Volkswagen AG, PSA Peugeot Citroen, and Toyota Motor Co. in this market.