Opel/Vauxhall, the European subsidiary of General Motors Co., is targeting to make a "substantial three-digit-million euro profit" in 2012, reported Automotive News Europe citing company sources. Last year, the Opel/Vauxhall lost $1.6 billion. It is also the only unit of GM to report a loss in the first quarter of 2011 while it continues with a major restructuring. It was nearly sold in 2009.
New Opel CEO Karl-Friedrich Stracke refused to provide the details regarding the targeted profit of Opel/Vauxhall.
He stated that the goal is to be “sustainably profitable” starting next year, and they are confident that they will achieve their target with their “significantly improved cost structure... and the higher sales figures” that we are targeting."
Stracke disclosed that the goal of Opel/Vauxhall for 2011 is to be "at least at breakeven" on an operating basis. He further stated that the subsidiary was operationally in the black during the first quarter this year but posted a pre-tax loss of 275 million euros due to write-downs related to its efforts to reduce staff and production capacity in Europe.
In addition, Stracke affirmed that they are on the right path, and have gained market share in 19 European markets out of 27 beginning this year. Furthermore, he stated that he wants the company to sell around 1.3 million vehicles this year, which is an increase from the 1.2 million last year.
He explained that part of the increase is expected to be from the Russian market, where sales are forecasted to reach 60,000 vehicles this year, an increase from the 40,000 in 2010. Stracke was the vice president of engineering at GM before taking over Opel in April.