General Motors need more help 0

General Motors have already joined forces with Peugeot Citroen in order to tackle the overcapacity crisis in the UK but they seem not be satisfied with that just yet. According to reports across the automotive industry Peugeot Citroen are now looking for more alliances in order to bring their Opel and Vauxhall brands back to profit.

Building Chevrolet vehicles

General Motors may turn to one of their own brands to help ease the pressure on Vauxhall and Opel. Rather than Peugeot Citroen exceeding their capacity limit, they will take up some of the space by building a European destined Chevrolet model.

Losses occurring once again

Vauxhall and Opel kept up the pattern by reporting an awful loss of $256 million for the first quarter. This led to fears that staff and factories across the European region will essentially be closed down.

Staff at the Ruesselsheim Design Centre safe

General have confirmed that no jobs will be lost at their Ruesselsheim Design Centre. It was rumoured that many jobs would be lost at this particular facility currently employs 6,500 people.

Cadillac and Chevrolet to go global with Opel and Vauxhall behind

These reports may not be that surprising to some as General Motors previously claimed that their strategy was to make Cadillac and Chevrolet a global brand with the likes of and Opel and Vauxhall backing them up.

More focus on exports

One problem for Opel and Vauxhall is that they are restricted to Europe, a region which is currently struggling tremendously. General Motors are hoping to defeat that problem by simply offering the vehicle a better export market. Opel may expand to the likes of Israel, Russia, China, North Africa, Australia, South America and the Middle East and Turkey. The Opel is present in some the mentioned regions but they do not have a great presence. General Motors would be looking to expand that.

Will that be enough?

However enhancing Opel’s export market may prove not be enough. Just two plants were needed in order to satisfy demand for their Astra Compact model, one of which includes the Ellesmere plant.

Politics have played a major part in the restructuring program of the Vauxhall and Opel brand. Recently Vince Cable spoke to General Motors executives regarding the potential closure of the Ellesmere plant, urging the company keep it open. He met bosses on two separate occasions, flying out to the United States on each occasion