Jump to content


SEARCH

0

Opel supervisory board approves turnaround plan

By SYF77 on 06 Jul 2012

Attached Image

Opel, the struggling European arm of General Motors Co , took a key step towards returning the brand to long-term profitability after its supervisory board voted in favor of a midterm business plan that included "massive" investments in its model range. The plan also envisages cost cuts, new models and efforts to win new export sales.

Attached Image

"The plan approved today paves the way for a strong future for Opel. GM stands behind Opel and supports management and labor," said GM Vice Chairman Stephen Girsky in a statement. The company has previously said it is working on plans that provide guaranteed jobs for German workers until 2016 in return for postponing pay increases, and the expectation that the plant in Bochum will close after that.

The company commented that it has plans to move into market segments where it has not been represented before, and expand sales in emerging markets. It also expects added savings from its alliance with France's Peugeot Citroen.

Opelís underlying operating loss narrowed to $747 million last year from $1.95 billion in 2010. GM Chief Executive, Dan Akerson, said at an event in Chicago that it was premature to say how soon GM could turn its European operations back to profitability. However, he added that he would be disappointed if they could not get back to profitability within 5 years.

GM has not formulated any plans to restructure the money-losing European unit, but would provide more details once a definitive deal with the union workers is reached.

discussions, other news, america and 8 more...

Viewed: 973 times

Related Blog Posts
SYF77
Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.



 
Car Makes

Please select a car make

Facebook Likes
   Featured Blog Post
Photo
A rare Lexus LFA has crashed in Singapore last week and with less than 10 units on our shores and...
POPULAR BLOG POSTS
Photo
Bob Lutz, former vice chairman of General Motors, has claimed that Tesla would be going bust soon...
Photo
Euro NCAP has published a list of the safest new cars in their respective classes for 2017. The...
Photo
Honda has refreshed its small crossover, the Vezel. Released recently in Japan, the car looks the...
Photo
Porsche has created a video explaining why some of its cars are producing brake squeal when drivi...
Photo
According to this YouTube channel, the Alpine A110 is a better sports car than the Porsche 718 Ca...
   Lifestyle Articles