Opel CEO Karl-Friedrich Stracke seeing many signs of progress

Article by Christian A., on May 6, 2012

Opel CEO Karl-Friedrich Stracke is seeing “many signs of progress” in the business of General Motors' Opel/Vauxhall unit, according to an internal letter that he sent to staff. He said there are signs that the business is improving but he claims to not be absolutely satisfied with the figures. He said that Opel surpassed the plans for cost reductions in raw materials in the first quarter.

However, this could boost the contribution margin of the Astra to cover fixed costs and for Great Britain, it found an “attractive partner” in Banco Santander with regards to vehicle financing. Stracke said that Opel’s market share in Russia grew by over half a percent.

This is the single major growth market it has outside of Europe with 2.8% in the quarter. Last Thursday, GM said that for the first quarter, it incurred an underlying loss of $256 million in Europe. This is primarily because of a distinct decrease in sales volumes, its best result since the second quarter of 2011, when it had gotten a small profit. Analysts had predicted a bigger loss.

But instead, Opel had lower losses than the $562 million loss in the previous quarter. Restructuring talks between GM and its European unions are ongoing. According to CFO Dan Ammann, GM is working hard to reduce costs in Europe while raising sales there.

He decided not to provide details on the broader restructuring plans. He said that the “big bang” that everyone’s waiting for may not happen. Instead, there would be a “series of actions” to bring the business to a level that they want it to be at.

Topics: opel

If you liked the article, share on:

Comments

Recommended

Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 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