“Get rid of Opel” General Motors are told 0
In order to help General Motors revive their fortunes throughout the European region, they have been advised to drop Opel.
This is not the first time that such calls for action have been made. The European based brand has been making losses for the last 12 years. Their performance this year is showing no signs of improving. Profits are down and they are a big hindrance on General Motors in their battle to keep on top of the worldwide sales charts.
The advice this time round came from a Wall Street expert analyst. The Euro Zone debt crisis is one that is not worth conquering many believe. The family car market within the European region is in dire decline. The situation was so bad last year that General Motors has to embarrassingly pull out of their original target of breaking even.
If General Motors were to dump the Opel brand, it would not come cheaply. To begin with there would be a massive bill to pay. However with European debts nowhere coming to prosperity, getting rid of the brand does seem like a sensible solution in many ways.
General Motors have come out to state that they standing by Opel on numerous occasions. There have been threats of plant closures and job losses but they are determined to eventually steer themselves into European profit.
Jim Cain has recently come out to state “Despite the tough environment for the automotive business in Europe, we believe we have an opportunity to turn the Opel/Vauxhall business around and bring it back to long-term profitability,”
The company’s commitment to their struggling brand was reaffirmed after a deal was struck with Peugeot/ Citroen.
Part of the cost cutting measures has involved the amount of contract and temporary employees in Europe. A deal is currently being sought after with IG Metall in order to cut the hours of more employees.
Opel was almost in danger of being sold before back in 2009. In the end General Motors decided that Opel were fundamental to their plans of building up sales around the world. Dan Akerson, the CEO of General Motors had been in strong favour of the sale. Many regret that the deal did not in the end go through.
There bound to be plenty more twists and turns throughout the rest of the year as far as General Motors and Opel are concerned.