NEW YORK (TheStreet) -- General Motors (GM) rose Monday after The Wall Street Journal reported that the U.S. automakers Opel unit, its European division that has been making losses, could break even prior to the 2016 deadline.
The Journal interviewed Opel's chief executive Karl-Thomas Neumann, who said he would stick to his official 2016 deadline but did not rule out an earlier return to profitability for Opel. Some analysts believe Opel could become profitable as early as 2015, according to the report.
Management shakeups, a lack of desire for small vehicles in Europe and differing objectives at GM (which wants global economies of scale) and Opel (which wants to customize the local market) have led to the unit's multi-year struggles. GM nearly sold Opel in 2009, and the unit has lost nearly $18 billion in the last 12 years.
GM announced plans last April to invest 4 billion euros, or $5.5 billion, into Germany and Europe by 2016 to transform Opel's aging product line with 23 new products and 13 new engines.
GM was up 2.66% to $32.78 at 10:56 a.m. on Monday.
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TheStreet Ratings team rates GENERAL MOTORS CO as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."