GM CEO says Opel can be successful with its new cost structure

Article by Christian Andrei, on August 11, 2011

In an interview with Financial Times Deutschland, General Motors Co. CEO Dan Akerson reiterated that Opel was not for sale, as it contributes to the company’s global size.

He also emphasized that the European brand can be successful with its new cost structure. In order to repeal rumors in Germany that GM may sell Opel, Akerson emphasized his commitment to the brand, which contributed 13 percent of the total sales of GM last year.

Akerson further stated that there are certain entities in Germany that “apparently have an interest in warming up these rumors." The speculations regarding Opel's future started in June with reports by German media that it could be possibly sold to certain buyers such as Volkswagen AG or China-based vehicle manufacturers.

With the new cost structure, the European brand can do more than just survive, Akerson told FT Deutschland.

He added that the brand could even become successful, stating that General Motors was profitable in Europe in the second quarter. The carmaker recorded a $102 million net profit in Europe last week for the second quarter compared against the $160 million loss on the same period last year.

European revenue increased from $6 billion to $7.5 billion. GM said in a statement that its European unit incurred restructuring costs of around $100 million. This figure is about $200 million less than the amount incurred in the second quarter period of last year.

Topics: gm, ceo, opel

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