Opel/Vauxhall News: GM Announces A $5.2 Billion Investment Into Opel

[William Maley]

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By William Maley

Staff Writer - CheersandGears.com

April 11, 2013

Yesterday, General Motors announced a $5.2 billion investment for Opel between now and 2016. This is part of a larger effort to nurture Opel back into health.

“As a global automotive company, GM needs a strong presence in Europe – both in design and development as in manufacturing and sales. Opel is key to our success and enjoys the full support of its parent company,” said General Motors CEO Dan Akerson in a statement.

This investment will will help support new models and help the brand back on track for its 10-year plan, called DRIVE! 2022, which hopes to bring it back into the black.

Opel needs all the help it can get. The brand saw $1.8 billion last year, continuing a streak of losses that goes back to 1999.

Source: General Motors, Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected]or you can follow him on twitter at @realmudmonster.

Press Release is on Page 2

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GM to Invest 4 Billion Euros in Opel's Future through 2016

• GM Board of Directors makes clear commitment to Opel
  
• GM CEO Dan Akerson: "Opel has GM's full support"
  
• Confirmation of "DRIVE!2022" plan for future
  
• Piece of Berlin Wall as symbol of solidarity
  

Rüsselsheim. The General Motors (GM) Board of Directors used its meeting in Rüsselsheim to underscore its commitment to Opel and Germany. This commitment was also manifested in the approval of a comprehensive investment program: GM will invest 4 billion euros in Germany and Europe through 2016. "As a global automotive company GM needs a strong presence in Europe – in terms of design and development as well as manufacturing and sales," said Dan Akerson, Chairman and CEO of GM, at a press briefing at Adam Opel Haus. "Opel is a key to our success and enjoys its parent company's full support."

The Board of Directors chose Germany for a regularly scheduled meeting to get first-hand information on the progress on its 10-year strategy DRIVE!2022 and the challenging European automotive environment. The Board also used this opportunity to meet with economists, unionists and politicians.

In addition to Akerson, Opel CEO Dr. Karl-Thomas Neumann, Supervisory Board Chairman Steve Girsky and Works Council Chairman Dr. Wolfgang Schäfer-Klug also spoke at today's press conference in Rüsselsheim. The Board of Directors welcomed the guests of honor Minister President of Hesse Volker Bouffier, the American Ambassador Phil Murphy as well as Rüsselsheim Mayor Patrick Burghardt, who brought the city's Guest Book for the visitors to sign.

Dr. Karl-Thomas Neumann, CEO of Adam Opel AG, emphasized that it is a great honor for Opel to be able to host the GM Board: "This Board has once again made very clear that our 10-year plan DRIVE!2022, that foresees our return to profitability by the middle of the decade, has our parent company's complete support." A large part of the investments are going into the Opel model offensive. Through 2016, Opel will introduce 23 new models and 13 new powertrains.

Opel Supervisory Board Chairman Steve Girsky said, "The Board of Directors is here to underline its solidarity and support. Opel has been part of GM since 1929 and is today more than ever a decisive element for the entire company's innovative power. This partnership is stronger than it has ever been."

Following the press briefing Dan Akerson revealed a piece of the Berlin Wall that belongs to Opel and will be placed in front of the Adam Opel Haus on Friedrich-Lutzmann-Ring. "This piece of the wall is a symbol of our corporate culture," said CEO Dr. Karl-Thomas Neumann. "The symbol should remind everyone that we overcome any walls in our heads and those between different cultures and that we are now starting a new chapter in the history of Opel."

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[David]

14yrs of losses, when do you just say enough of the Union Bleeding a company to death and start clean?

I think with 5.2 Billion, you could Kill off Opel and go full force on a Chevy/Buick/Cadillac approach and have factories in non union areas.

[ZL-1]

There are no non-union areas in Western Europe, and Buick would be hard to establish here. Continuing to merge the Opel and Buick core lineup (keeping specific models to cater to unique tastes) is the way to go product-wise. Structure-wise I think it's time Opel is fully assimilated into what GM Europe should be, i.e. the European arm of GM and not a brand going its own way.

[Drew Dowdell]

GM Europe should be Chevy - Opel (shared with Buick) - Cadillac

but then they'd need to deal with that dealership network too...

[Drew Dowdell]

also... this $5 billion needs to go to the sales channels... NOT manufacturing. GM could build the best vehicles in the world at the best prices available and it wouldn't matter because they are trying to sell them out of the back of an Exxon station.

[Camino LS6]

Anyone else see very dark clouds on the horizon?

Right over the bottomless pit?

Centered in a wasteland?

Just askin'.

[riviera74]

Anyone else see very dark clouds on the horizon?

Right over the bottomless pit?

Centered in a wasteland?

Just askin'.

Yes, Yes and Hell Yes, respectively. Europe, unlike the USA, is at best heading towards a depression and at worst stagflation. Maybe both, who knows? If I were GM, I would ditch Europe, let the continent implode economically (and the Euro die) and then buy when there is blood on the streets. Europe has far too many problems, especially given that the car market is essentially dying over there.