GM announced it will choose a gradual restructuring for Opel despite rumored pressure from the French government for a more transformative alliance with PSA.
Unlike its rival Ford Motor, which chose to close three facilities in Europe, GM said that such a drastic approach is not efficient in the region. GM said it plans to break even in Europe by 2015 and introduce 23 new models in the following 5 years. Still analysts doubt that these plans would be enough to reverse Opel’s losses, which are expected to reach at least $1.5 billion for 2012.
“The stable share is way too bullish,” said Morgan Stanley analyst Adam Jonas, who last year suggested GM sell Opel and doesn’t see the unit meeting its break-even goal. “The revenue assumptions behind that don’t allow for enough further degradation” in the market or Opel’s business, he added. “Everyone’s doing new product.”
GM said that it will not sell Opel to PSA or anyone else, but reminded that the company and PSA already have a plan to jointly develop small gasoline engines and three vehicle families. A newspaper report said that GM plans to transfer Opel to PSA Peugeot Citroen besides several billion euro. French Finance Minister Pierre Moscovici refused to comment on this issue.