Opel Adam output reduced but not due to a drop in demand

Article by Christian Andrei, on October 3, 2013

The production of the Adam minicar and Corsa subcompact at Opel’s factory in Eisenach, Germany, will stop for several days in October 2013. Opel dismissed media reports that this decision was made due to a drop in demand. Opel explained that adjustments were made because of the winter season and the persistent economic issues that affect automakers in southern Europe.

Last Wednesday, an Opel spokesman told Automotive News Europe that Adam sales are "fine” and that the down days are primarily due to the Corsa production, a model in the later stages of its life cycle. Opel started to produce the Adam model in January. In the first seven months, it has assembled 41,000 units. Market researcher JATO Dynamics said that for the same period, 27,214 Adams were sold in Europe.

Opel is relying on the Adam model to reverse its decreasing sales. Opel hopes to attract sales by offering new products in growth segments. In line with this strategy, Opel has presented the Mokka small SUV and Cascada mid-sized convertible.

Since 1999, GM's European operations (mainly Opel and its UK sister brand Vauxhall) have posted losses of over $18 billion. Industry organization ACEA said that sales of both brands in EU and EFTA markets recorded a 5% drop to 546,367 in the first eight months. This is comparable to the market’s overall decrease in the same period.

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