Opel/Vauxhall 5-year rescue plan revealed

Article by Christian A., on August 27, 2010

About 8,300 jobs will be cut at Opel/Vauxhall as part of a five-year plan that has a goal of cutting capacity by 20%, refreshing 80% of its product lineup and bringing the company into profit by 2012. Opel/Vauxhall, a General Motors division, added that the 11 billion euro ($15 billion) plan needs 3.3 billion euros to run the company during the restructuring.

To reach the sum, the division will request European governments with Opel/Vauxhall operations for loans or loan guarantees of 2.7 billion euros.

As part of the plan, Opel will proceed with closing the factory in Antwerp, Belgium, to cut capacity to match weaker demand for new cars.

The plan is also believed to include a strategic push into alternative propulsion technology that will see the launch of an extended range electric vehicle aside from the Opel Ampera, a sibling to the Chevrolet Volt.

In a statement, CEO Nick Reilly said that Opel/Vauxhall has a "clear vision" to be a leading European manufacturer of high quality, desirable automotive products, based on German engineering.

Reilly also shared that external auditors Warth & Klein have said the carmaker's plan is viable. With that assessment, it now has formally applied for loans or loan guarantees from the German government. Germany's role is vital as it has half of Opel's 48,000 workforce. Opel is asking Germany for 1.5 billion euros.

A further 1.2 billion euros is sought from the UK, Spain, Poland and Austria. In addition, Opel said the viability plan anticipates that 80% of its carlines will be three years old or less by 2012.

This includes eight major launches this year such as the Meriva, Corsa, Movano and Astra Sports Tourer and another four in 2011, including the Ampera, Europe's first extended range electric car.

Opel is set to spend 1 billion euros on fuel-efficient powertrain technology including introducing pure battery-electric vehicles in smaller-size segments, start/stop technology, downsized engines and expanding LPG and CNG applications.

The company also has accelerated efforts to launch a minicar that's slotted below its Corsa subcompact Corsa, making a strong push in the light commercial vehicle business. [via autonews - sub. required]

Topics: opel, vauxhall, plan

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 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