Vauxhall May Soon Begin To See Profits 0
As it is now the end of the first financial quarter of 2016, business from every sector releases how well they have performed. So, for Vauxhall and Opel (the company’s European partner) how well have they performed.
The answer to this question is very well. Well, better than they have done for a very long time. Opel has announced that it is almost breaking even after years of losses. So although Vauxhall and Opel still remain in the red, a £4.1 million loss is the best that they have recorded since the second quarter of 2011. So this looks very good for Vauxhall and Opel. But, the company is still prepared for looses and don’t expect to break even this year. Opel CEO Karl-Thomas Neumann noted that the company are a lot closer to our target of breaking even for the full year but, won’t undertake in any ‘forgone conclusions’.
The main reason for the sudden change in fortunes for Vauxhall stem from the record sales of the new Astra model. With sales rising from 292,000 to 311,000 when the first quarters of 2015 and 2016 are compared. Although the sales figures are impressive, the car also won European Car of the Year Award 2016 and since then, there have been a reported demand for 150,000 of them across the UK and Europe.
Vauxhall have sold very well considering it is based simply in the UK. Opel however, by using just the Astra, have hugely increased their sales. With an increase in sales of 40 percent for the one vehicle, it has topped the charts in Spain for passenger based vehicles and, has also snuck into Belgium’s top 5 for the same category.
So, we may actually see Vauxhall and Opel break even by the end of the year. We can only hope so anyway…