DHAKA: The head of Opel has described the UK’s decision to leave the European Union as a ‘bad omen’ for General Motors in Europe.

Karl-Thomas Neumann said in a video message that the outlook for the second half of 2016 was going to be ‘anything but easy’.

Despite reporting a global second quarter profit of $2.9bn in the period between April and June, a 157% rise from last year, Opel’s parent company GM said it would cut costs across Europe, reports the BBC.

It said it was concerned about currency depreciation and market disruption.

The European division, which includes the Vauxhall brand in the UK, reported a second quarter profit of $0.1bn, its first in five years.

Nevertheless GM indicated cost cutting was on the cards as the effect of Brexit could cost it up to $400m.

‘We are facing strong headwinds at the moment, particularly in our largest market - the United Kingdom. The Brexit decision is not a good omen. Therefore the second half of this year is going to be anything but easy,’ said Neumann.

GM did not give out specifics about where those cuts would come from. The company’s chief financial officer Chuck Stevens said ‘everything is on the table’.

BDST: 2242 HRS, JUL 21, 2016
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