Will Chevrolet production come to Europe? 0
The Opel / Vauxhall brand is a struggling one for General Motors at present. The Opel division are urging General Motors to shift production their Chevrolet brand to Europe in order to increase profitability and bring more prosperity to the brand.
The American giants devised a plan for the Opel and Vauxhall brand in 2010. The main aim was to restructure the company in order to save €265m annually until the year 2014.
Work unions have proposed the idea of relocating production of Chevrolet cars from South Korea to Europe. The idea has been brandished about but has not been officially discussed by any top executives or management as of yet.
Trouble in Europe
Opel / Vauxhall and all other European based General Motors brands are heavily preparing themselves for what will be a very tough year in the car market. The Euro Zone crisis has made banks more sceptical about lending out money for cars. The whole industry could shrink by up to 10 % according to experts. The European Division overall will struggle to break even after General Motors dropped it’s target last year. Their third quarter operating loss stood at $292 million.
Reduction in job cuts?
Operations have changed swiftly within the Opel division. Already 8,300 jobs have been cut with a major a company plant based in Antwerp. Opel hope that moving production will reduce the amount of jobs cuts, as there will be more projects and work to carry out.
Understandably, Dan Akerson the General Chief Executive has stated that restoring profitability is the company’s number one priority. There appears to be feeling around the industry that everything will get worse before it manages to get any better.
Better time than ever
The idea has indeed been discussed before. Nothing came from the discussions but perhaps talks could resume from where they were left off. Perhaps it would be a much better time to discuss such an idea, with the Chevrolet currently thriving across the world. The Eastern European region in particular is a successful one for the company.
General Motors have not ruled out the idea of generalising their motor brands in the past. This would be a better time than ever to do so.