Opel held an extraordinary all-employee meeting today and Chief Executive Officer Karl-Friedrich Stracke revealed a plant for returning the company to profitability as quickly as possible. The plan includes 10 key cornerstones and one of them is a €11 billion investment in a comprehensive new model campaign through 2014.
This year, the Opel/Vauxhall will introduce six new models: the new Mokka, a new Astra Version, a new convertible, a new urban vehicle and the new Adam city car. The Adam will be built at the Eisenach plant, making it the only model in that segment built in Germany. Moreover, Opel/Vauxhall plans to introduce three new engine generations in the next 18 months.
Opel/Vauxhall also wants to expand its position as the leading manufacturer of alternative propulsions. In order to expand its business, Opel wants to enter new markets such as Australia, North Africa, South America and the Middle East.
As expected, Opel/Vauxhall will have to build good quality cars and to do this the company launched a number of initiatives that should make the company one of the industry leaders in quality. A new brand strategy will also be needed and Opel/Vauxhall is working on a new one, as it has to keep its customers but also attract new ones.
Opel/Vauxhall has launched several initiatives to increase its contribution margins. New alliances will also be needed and Opel/Vauxhall is open to beneficial partnerships such as the one that GM recently made with PSA Peugeot Citroen.
The Opel/Vauxhall will be upgraded and the company will invest more than €300 million in the two future Astra plants. The final point is studying production of Chevrolet models in Europe, as Opel/Vauxhall will need to see whether or not there is merit in building Chevrolet vehicles in Europe to improve capacity usage.
Stracke – who also serves as President of General Motors Co. Europe – said in March that all Opel/Vauxhall sites will remain open through 2014. He, however, noted that no actions will be spared in its efforts to go back to profitability in the future.
Stracke remarked that GM will find other options to cut losses at its European operations. One of these is to review the wages. He noted that closing down factories isn’t an option.
Moreover, Stracke remarked that he had a talk with GM CEO Dan Akerson, who vowed to give his full support to Opel. Stracke and Akerson have agreed that solutions for Opel would be resolved in Europe rather than in the US. Stracke has been the CEO of Opel/Vauxhall since April 1, 2011.