Opel to buoy profit through General Motors image

According to Opel’s Chief Executive, Karl-Thomas Neumann, the loss making business aims to finally make a financial comeback through closer tie-ups with parent company General Motors.

The executive said the European unit aims to further increase its market share in the region, slash costs and focus on the small cars line-up that would see an increased usage of parts provided from within General Motors.

“To be really profitable you need to use a global platform,” Neumann said. “I have a lot of confidence about achieving our interim goal,” of stopping losses by 2016.

During a briefing with journalists, Neumann said Opel and its sister/subsidiary Vauxhall have a medium-term goal of becoming Europe’s second largest automaker in the passenger car segment and further increase the market share from the current 5.8% to 8% by 2022.

Last year, after many years of management disruption, Opel finally became number one in Europe for General Motors, as the parent company decided to pull out the Chevrolet brand out of the region and invest 4 billion euros ($5.2 billion) by 2016 in Opel’s new product range.

The new strategy calls for shared development and sales of Opel and Buick cars, to cut costs at both brands, with the former focused on the European region and the latter on sales in the China and United States regions.

Via Reuters