Opel optimistic about being profitable with the new Adam

Article by Anita Panait, on January 7, 2013

Opel/Vauxhall is positive that it could build its new Adam minicar in Germany and still post profits, Opel sales and marketing chief Alfred Rieck told Automotive News Europe. Rieck remarked that the way Adam has been constructed provides the carmaker the possibility to build it in Germany and still be profitable.

Opel is producing the Adam at its Eisenach plant Germany, in contrast to the current trend in which carmakers build their vehicles in Eastern Europe due to lower wages in the region. Opel designed the Adam on a shortened version of the platform that underpins the Opel Corsa to reduce engineering costs. Both the Adam and the Corsa will share the same paint shop, body shop and assembly line to cut manufacturing costs.

The two cars will also share powertrains. The Adam will be powered by the 1.2- and 1.4-liter gasoline engines that run the Corsa. This year, Opel will offer two versions of a three-cylinder turbocharged 1.0-liter gasoline direct-injection unit.

Opel will roll out the Adam to showrooms in Europe this month. Opel executives hope to prove that the carmaker can profitably build cars in Western Europe by borrowing engines, technology and manufacturing from the Opel Corsa.

Other carmakers have already given up trying to make a profit while producing vehicles in Western Europe. For instance, Nissan imports the Micra from India while Mitsubishi plants import its subcompact from Thailand.

Honda, meanwhile, recently announced that its Swindon plant in the United Kingdom will halt producing the Honda Fit. In October 2012, Reuters, citing unnamed union officials, reported that Renault plans to produce 70 percent of its Clios in Turkey.

As for Opel, the carmaker has bright plans for the Adam, which will compete in the "premium A segment," that already includes cars like the Fiat 500. The Adam carries a EUR11,500 starting price in Germany, mirroring that of the 500. The Adam will also offer a wide range of personalized equipment to entice customers to spend more for their vehicles.

Topics: opel, opel adam, city car

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