GM working on a plan to make Opel profitable again

Article by Christian Andrei, on June 15, 2011

It’s no secret that General Motors is no pushover in the auto industry but what could be considered as one of its weaknesses is its European Opel unit. Chief Executive Daniel Akerson has the difficult task of turning this brand around.

Sources say that Opel has faced short-term financing problems at the parent company, preventing the brand from returning to profitability. Europe is growing slowly but Opel remains to be a high-cost brand in a very competitive segment.

Workers have already started to speculate that Opel will be sold or there might be labor concessions. Analysts and experts say that it won’t be easy to sell it off or make it have profitable growth again. An insider said that GM is “frustrated” with Opel and has been considering it as a “challenge” for many years.

Another source said that Europe itself is hard with its numerous structural hurdles in the auto sector, which is linked to cultural, media, political aspects that make it difficult to make significant changes.

He added that the problem with this is that Opel needs big changes so that its issues could be solved. Akerson, who has a background in private equity, is faced with the task of operating a big industrial company that’s being closely watched.

Complicating matters is the fact that GM is under political pressure not to implement layoffs or plant closures. It’s also facing some resistance to extend Opel’s geographical coverage due to worries that the brand is highly regional and would draw market share away from the other GM brands.

Topics: gm, opel, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
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