GM is hoping to turn around Opel, one of its European assets. (Photo: Opel)
RUESSELSHEIM, Germany New General Motors chief Mary Barra is stressing the companys support for its struggling Adam Opel AG subsidiary in Europe, saying Opel workers will get the job of building a new vehicle at the companys main plant in Germany.
Barra said it was no accident that Opels headquarters in Ruesselsheim was the destination for her first foreign trip since become CEO on Jan. 15.
I thought it was very important to reinforce in person my commitment and GMs commitment to Opel, she said during a brief appearance before journalists Monday. She called Opel clearly a vital part of our company.
Barra was reiterating the commitment made last year by her predecessor Dan Akerson to turning Opel around after years of losses.
She said Opels Ruesselsheim assembly plant would be the site for an all-new vehicle that for competitive reasons she couldnt name. The plant already produces the Insignia and Astra models. The company is closing another plant in Bochum at the end of this year.
General Motors Co. considered selling Opel to Magna International in 2009 but changed its mind. Akerson went to Germany last year and underlined the Detroit-headquartered automakers commitment to turning its European business around by rebuilding its brand image and launching new models.
GMs goal is now to return Opel to break-even by mid-decade, and is plowing 4 billion euros ($5.5 billion) into GMs European business. Opel is rolling out 23 new models and 13 new engines over the next several years.
Barra cited the companys success with recent models such as the tiny Adam city car and the Mokka small SUV as grounds for optimism. Opels market share inched up to 6.8 per cent in the European unio from 6.7 per cent last year. Still, the division lost money, recording an operating loss of $200 million euros in the third quarter.
Europes mass-market carmakers are plagued by weak demand from an economy that is recovering only slowly from a crisis over too much government debt. The economy is growing again but unemployment remains painfully high at 12.1 per cent.
