General Motors’s ongoing strive to revert its loss-making Opel/Vauxhall division to positive results may end this year, even as the region’s economy proves to be shaky once more.
GM President Dan Ammann said that the carmaker has swiftly moved to restore European operations to profitability and the efforts are currently on the right path, even as the European economy is in turmoil because of political and economical factors. According to Ammann, who discussed the proceeds on the sidelines of the World Economic Forum in Davos, Switzerland, the European economy has been “a little softer than even we expected and I think we were at the low end of expectations,” but “that doesn’t derail our fundamental objectives” and the strategy is “generally on track.” Back in 2013, General Motors made the surprising move of axing the not so long ago introduced Chevrolet brand, instead focusing on securing the European revival of the German Opel and UK Vauxhall brands. The No. 1 US carmaker pledged investments worth 4 billion euros to introduce 23 new cars and 13 new engines.
General Motors has forecasted it would end years of losses by “mid-decade” as it reworked the unit’s image with new introductions such as the Mokka subcompact SUV and upcoming Karl minicar. The automaker, currently the third-largest in the world, aims to tackle the European supremacy of second-placed globally Volkswagen AG – though the latter managed to grow sales twice as fast as Opel/Vauxhall in 2014. The unit’s new car sales last year soared 3 percent to 1.08 million autos in Europe.
Via Automotive News Europe