NEW YORK (CNN/Money) - Embattled U.S. automaker General Motors Corp. is showing signs of stemming losses from its European operations, according to a published report.

The Wall Street Journal reported Thursday that GM Europe Chairman Frederick "Fritz" Henderson told the paper in an interview that "there's a view the tide is beginning to turn" in Europe for GM.

GM (Research) still projects a loss of $500 million in Europe this year, although that would be down from a loss from continuing operations of $976 million there in 2004. The company has not reported a full-year profit in Europe since 1999. Henderson assumed control of the unit in the summer of 2004.

Henderson told the Journal that "we're on a positive trajectory, but not at an acceptable level."

A turnaround in Europe could help the company, which is also focused on trimming U.S. health care costs to stop losses in its core American automaking operations.

The Journal also quotes some experts as saying that success in Europe could mean bigger things at GM for Henderson.

As part of a management restructuring in April, GM Chairman and CEO Rick Wagoner assumed day-to-day responsibilities for its North American auto operations.

Some experts told the paper that success in Europe could lead GM to bring Henderson back to Detroit to take a broader role under Wagoner. Others suggested that Henderson would even be a candidate to replace Wagoner if the board gets impatient with losses.

"The reality of Detroit is that Wagoner is getting his last chance," Stephen Cheetham, an analyst with Sanford C. Bernstein in London, told the paper. "Henderson has a bright future if he manages to turn around Europe."

Henderson wouldn't comment on his future at the company, telling the paper, "Rick's my boss. I like working for Rick."

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