GM announced its workers in Germany it will not sell its loss-making Opel, nor close and leave it.
Investors are continuously putting pressure on Dan Akerson to divest or unwind the loss-making European Opel. Morgan Stanley predicts that Opel will report another $1 billion in annual operating losses after $16 billion lost over the past 12 years.
“Our protracted losses have even prompted some analysts to argue that we should sell Opel or simply close up shop and leave car sales in the region to others – I’m not about to do that,” said Dan Akerson. “As a global auto company, GM needs a strong design, engineering, manufacturing and sales presence in Europe. There’s room for Chevrolet in Europe but Opel fulfils that role.”
Analysts still believe that Akerson is more open to a radical approach, taking into consideration that he wanted to sell Opel to Magna in 2009. Now, GM’s CEO says that the 23 new and replacement models to enter the market by the end of 2016, are a clear proof that GM is focused on helping its European unit. According to Akerson, if the automaker’s plan was to sell Opel, it wouldn’t be wasting money and time with these investments.