GM CEO Dan Akerson disclosed Opel will take time to generate profit

Article by Christian A., on April 25, 2012

It may take "a while" before Opel, the German unit of General Motors, turns a profit, according to GM CEO Dan Akerson. He also said that he would not rule out shutting down plants as he restructures the money-losing subsidiary. He describes the automaker's operations in Europe as a "four-alarm fire." When asked whether he would have to close factories, Akerson declined to make a comment.

He revealed that negotiations with the labor union are ongoing. However, he stated that Opel will not recover until production or capacity and diminishing demand are balanced. Akerson added that unless a strong export model in the European region is available, "you're not making money."

He did not provide specific timeframe as to when Opel is expected to return to profit. In 2011, Opel and its UK-based sibling company Vauxhall abandoned plans to breakeven. The unit incurred an operating loss of $747 million at the end of 2011. Since the late 1990s, GM has lost at least $13 billion in the European region.  Media reports stated that the GM's facilities at Ellesmere Port in England and Bochum in Germany are under threat of closure.

Last month, the sales of Opel/Vauxhall dropped 11% to 111,285 in the 27-member EU states plus Norway, Iceland and Switzerland in a total market down 6.6% -- a 14-year monthly low. 

GM is set to announce the details of an Opel plan in the summer, Akerson told Financial Times on the sidelines at the Beijing motor show. The paper further cited the CEO as saying that they "hope" to discuss "more specifically" within the next months on the details of the plan going forward. [source: Autonews]

Topics: gm, ceo, dan akerson, opel

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries