Can Vauxhall sort out their finances? 0
Vauxhall have vowed to amend their financial situation by the year 2015. Sounds a bit too good to be true at the moment but owners General Motors have made it a priority and believe that it is very realistic.
For the past 12 years Vauxhall have been on going downhill. They are losing profit and failing to even break even throughout the European region.
Ellesmere Port Factory
Vauxhall will be looking to the Ellesmere Port Factory to help revive the fortunes of the company. This is their biggest factory in the UK. They have recently received a great deal of backing and a major confidence boost after being subject to great speculation of closure and job cuts. They currently employ 2,200 at their Ellesmere Port Factory and 1,500 at their Luton plant.
Are Vauxhall the fastest selling brand?
Stephen Grisky, the Vice Chairman of General Motors is fully confident that Vauxhall can overcome their money woes. He was quick to point out that the Vauxhall Insignia is outselling the Ford Mondeo at a ratio of two to one and that they are the bestselling commercial vehicle seller. He stated that effectively Vauxhall was the fastest selling brand in the UK.
European global crisis
It’s not only the UK that has the problem; it’s the whole of Europe. The Opel and Vauxhall brand have suffered thanks to the Euro Zone crisis. Sales have suffered with customers in Europe not having any money to dish out on new cars and banks being tighter on lending out money. A major disadvantage is that sales mainly occur within the European region.
2012 saw a £1 billion + loss in Europe in 2012. Despite sales getting steadier, profit margins are getting smaller. Vauxhall should be making money with such a great amount of sales. Ford is also in the same boat. They expect to lose over £1 billion this year too, despite sales estimated to be at around 13 to 14 million.
The Vauxhall Ampera has not met targets and has disappointed with sales. They have sold just 6,000 since being released. The vehicle had a great deal of funding with a great amount of new technology going into it.
23 New Cars to Mainatin Interest
Vauxhall is planning to release a total of 23 new and revitalized cars which will enter showrooms. This will certainly help aid the company’s growth and maintain customer’s interests.
It will take a great deal of work for Vauxhall to achieve profit any time soon.