Opel/Vauxhall turnaround plan approved by supervisory board

Article by Christian A., on July 2, 2012

Opel/Vauxhall will be following a midterm business plan that will bring the company back to sustainable profitability. This plan was recently approved by its supervisory board. Under this plan, the division will invest in new products and will use a new branding strategy. In the statement, GM Vice Chairman Stephen Girsky said that this plan clears the path for Opel to have a “strong future.”

He also said that GM is supporting Opel and its management and labor. Girsky leads Opel’s board, which is evenly split up evenly between GM representatives and elected delegates from the more than 40,000 workers at Opel and Vauxhall, its UK sister brand.

Covering a four-year-period until the end of 2016, this business plan entails "massive" investments in the product lineup, an increase in exports, reductions in material, engineering and development costs as well as additional savings from GM's alliance with PSA/Peugeot-Citroen.

It didn’t provide concrete details. Opel also didn’t say when it expects to be profitable again. Notably, the company’s underlying operating loss decreased in 2011 to $747 million from $1.95 billion in 2010. Opel's top labor leader, Wolfgang Schaefer-Klug, said that the GM’s support demonstrates the importance of European engineering and the European sites of Opel and Vauxhall.

Opel didn’t give additional details about its new brand strategy. However, Automotive News Europe Congress talked to Opel CEO Karl-Friedrich Stracke last week. He said that the brand will adjust the prices of its cars so that they’re more affordable to the traditional mass-market customer base.

In addition, Stracke said that this unit won’t cut investments in new products even with Europe's debt crisis. Last May, Opel said that it will invest about 11 billion euros through 2014 in new models like the Mokka subcompact SUV, Astra sedan, an Astra-based convertible and the Adam minicar.

Topics: opel, vauxhall

If you liked the article, share on:

Comments

Recommended

Not so long ago, the 2018 Genesis G80 Sport made its debut at the 2016 LA Auto Show. But at that time, it did not have a price yet. And...
by - April 23, 2017
It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 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