General Motors, which is pulling the Chevrolet brand out of Europe as part of its strategy to streamline the region’s business and stop years of losses, just announced it has moved to create a new entity – the Opel Group.
The new division is reuniting underneath the Opel/Vauxhall brands and other operations in the area, including the successful GM unit from Russia. The headquarters of the new business unit is Rüsselsheim, Germany – Opel’s hometown.
“Today, we are more than just Opel/Vauxhall,” Karl-Thomas Neumann, CEO of the management board of Opel Group, said in a statement. “With the Opel Group, we align our organizational and legal entity structure in Europe with the business operations. We streamline our decision making processes and increase our efficiency. In brief: this reorganization is an important step in implementing our business plan DRIVE! 2022 and another sign of confidence of our parent company GM.”
Neumann, which served before as a Volkswagen AG executive, was also the chairman of the Adam Opel AG management board since March 2013 and serves as GM Europe’s president. The regional unit had a shrinking, $284 million loss before interest and taxes in the first three months of the year, and second-quarter earnings are due to be reported later this week.