Opel highlights future plans, will reach profit in 2012 – rpmGo.com

Opel/Vauxhal‘s new CEO, Nick Reilly, revealed yesterday the future plans for the company, now that it is safely established that it will continue under GM, and won’t be sold to another corporation.

The five-year business plan, presented by Reilly, ensures that the company will reach profit in 2012, and that until 2014, an estimated £9.7 billion (around $15.1 bn) will be invested in the carmaker. As such, it will seek out loans from various European governments including Germany, UK, Spain an Austria, amounting to £2.4 billion. To kickstart the process, GM has also contributed with £500 million.

“We will build a European company that is profitable, self-sustainable and fit for the long-term,” said Reilly. “Today’s announcement marks the beginning of a new era for Opel/Vauxhall. It is the biggest overhaul in the company.”

Said overhaul will still require a capacity reduction of around 20%, meaning that 8,300 jobs will need to be cut, with 7,000 affecting manufacturing and the rest in sales and administration structures. The money attained will then be invested in three key ares: the development of new vehicles, including one which will slot in beneath the Corsa, the introduction of fuel efficient cars, like the upcoming Ampera, and the possibility of expanding to the Middle East and Asia.

“We now have all the necessary ingredients for a successful future in place: a motivated workforce, a new and accountable company culture, a product offensive based on innovative and highly fuel-efficient technology, a competitive cost structure based on conservative volume assumptions, a dedicated management team and the support from so many stakeholders. Now it is up to us to prove we can do it. I am confident that we will.”

With the new vehicles like the Insignia or Astra looking extremely good, both in terms of quality and price, and with this stable future direction, Opel might just fulfill these plans. What do you think?

Source: Autocar

Post tags: Tags: nick reilly, Opel, vauxhall