Opel Looks For New Allies to Turn Profit image

Opel recently declared that it is open to make new alliances beyond that with Peugeot Citroen and that it could manufacture a Chevrolet model to boost profit.

Karl-Friedrich Stracke, Opel’s CEO, said that the company is taking into consideration different projects, including that of making a new alliance.

“Opel is open to beneficial partnerships, like the recent one with PSA Peugeot Citroen,” Opel said in a statement.

GM’s two European brands, Opel and Vauxhall, posted a first-quarter decline of $256 million, which could lead to closing some plants. Opel declared that no jobs will be lost at its ITEZ developing centre, which has 6,500 employees.

“We are in talks with our (GM) colleagues in Detroit and Shanghai to see if we could build Chevrolet vehicles in Europe to improve capacity utilisation,” Stracke said in a statement.

Opel tries to establish itself in markets such as North Africa, Australia, the Middle East and South America, and to expand its presence in China, Israel, Turkey and Russia. The company focuses on the Astra model which is currently being produced at three plants in two shifts, at Ellesmere Port, Britain, Gliwice, Poland, and Ruesselsheim, Germany. Stracke said that production will be shifted to only two plants, running three shifts. The company wants to focus more on Europe, since increasing Opel sales in new markets won’t be enough to boost profit.