Opel Hopes to Boost Sales Through Opel Financial Services image

Opel expects to boost sales relying on cheaper leasing deals and loans after it has taken back in-house the German banking license.

In April, GM Financial Company launched the new ‘Opel Financial Services’ brand, after it has bought back former financial services affiliate Ally Financial’s European and internationals operations. Ally was the one which held the German banking license.

“The launch of Opel Financial Services was a very important step for our brand and for our product offensive. Opel was not always in a position to make the best financing offer. We did not have our own bank, like competitors,” said Opel’s finance chief Michael Lohscheller.

GM Financial has signed in November an acquisition deal with Ally Financial worth $4.2 billion, which was partially closed in April. GM Financial has offered $1.7 billion for the European operations. Opel now hopes that by using financing to more than 40% it will manage to boost sales. Other automaker sell up to 50% of their cars using financial offers.

GM has promised to invest $5.2 billion in Opel by 2016 to help the automaker introduce new models and help the company end losses in Europe. Opel plans to introduce 13 new engines and 23 new models by 2016.

Source: Reuters