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'Situation for GM Europe critical'

16 February 2012 Last updated at 11:18 GMT

As General Motors (GM) prepares to report its profits there are worries that its European arm is struggling.

GM's Opel business, with plants in the UK and Germany, is expected to lose $300m in the last quarter.

GM has shut plants and cut jobs in Europe but many expect more losses to come.

Paul Newton ia a motor industry analyst at IHS Global Insight and he warned that GM "can't maintain the capacity that they have [done in the past]".