Opel to build US-bound Buick at its Ruesselsheim site

Article by Christian Andrei, on March 30, 2014

Opel will produce a Buick model for the United States at its Ruesselsheim site in Germany in the 'second half of the decade. Opel, unit of General Motors, currently build the Insignia mid-sized sedan that is underpinned by the same platform that underpins the Buick Regal at its Ruesselsheim site. Opel will make a EUR245 million ($336.62 million) investment to build a new model in Ruesselsheim, with details of the vehicle to be unveiled before the end of the year.

GM President and Opel Supervisory Board Chairman Dan Ammann said in a statement that through the investment in a new model for Ruesselsheim, they are taking take another significant step in their “multi-billion dollar model offensive” through the company will pave the way for Opel’s profitable growth. According to Opel, supervisory board had approved a new variant of the Insignia for future production.

Opel will also add production of the Zafira Tourer minivan at Ruesselsheim next year. On the other hand, GM’s European unit will also halt vehicle exports to China in January 2015. Opel said further expansion in China would cost a triple-digit million amount. It should be noted Opel sold only 4,365 cars in China in 2013, compared with Buick’s 810,000 cars.

Opel CEO Karl-Thomas Neumann said in the statement that it would have cost hundreds of millions of euros to raise awareness of the Opel brand in China and to expand its distribution network in the country. The move follows up on the GM's global reorganization. In December, GM announced it would withdraw Chevrolet from Europe and stop production of its Holden unit in Australia. [source: Opel]

Topics: opel, buick

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