Report – Opel’s sales growth enough to avoid cuts image

Chief Executive Karl-Thomas Neumann told newspaper Sueddeutsche Zeitung that Opel is cautiously optimistic that sales will grow enough in 2014 to avoid a further round of cost cutting.

GM is sticking with a 4 billion euro ($5.5 billion) investment plan for Opel and the strategy for the loss-making European subsidiary will remain in place even after a change of leadership at GM headquarters in Detroit, Neumann said.

Opel is on track to reach profitability by 2016, Neumann said, but the company expects a difficult year ahead, weighed down by restructuring costs for ending vehicle production at its factory in Bochum in Germany.

“If the world doesn’t come to an end, we should keep growing, and then we don’t need additional cost savings,” Neumann said in an interview with the paper. “I will stay with Opel a long time. This is no short-term matter,” Neumann also said, adding that he could fight Opel’s corner because he was also a member of key GM committees in Detroit.

Neumann said Opel’s cooperation with PSA Peugeot Citroen would continue even after GM said it would sell down its 7 % stake and the French automaker announced it would seek closer ties to Dongfeng.

Via Reuters