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)
Press Release is on Page 2
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."