• Sign in to follow this  
    Followers 0

    GM Announces A $5.2 Billion Investment Into Opel



    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 william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster.

    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."

    0


      Report Article
    Sign in to follow this  
    Followers 0


    User Feedback


    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.

    0

    Share this comment


    Link to comment
    Share on other sites

    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.

    0

    Share this comment


    Link to comment
    Share on other sites

    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.

    0

    Share this comment


    Link to comment
    Share on other sites

    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.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    Loading...



  • Popular Stories

  • Today's Birthdays

    1. sciguy_0504
      sciguy_0504
      (30 years old)
  • Similar Content

    • By dfelt
      G. David Felt
      Staff Writer Alternative Energy - www.CheersandGears.com
       
      Europe's 400 Ultra-Fast Charging Network by 2020

      Europe like America has the 3 basic charging standards in play in their fragile network of 2016. These is what we know as the 110, 220 and 440, level 1, 2 and 3 chargers. Yet Europe is not standing by waiting for Tesla or American Auto companies to drive EV auto's. Instead Europe has built the following consortium of Auto companies who have all chosen to contribute an equal amount to building the next generation charger network. VW, GM, BMW, Daimler, FORD, FCA, Hyundai, Volvo and Jaguar Land Rover have choosen to build 400 locations over the next 3 years that will sense and charge up to 350 kW in the period of a quick Coffee break. This is significantly faster and higher than the Tesla 120kW fast charging system. The goal by the European Government is to offer road trip worthy auto's with fast charging to bring less noise and cleaner air to European cities by 2020 and to make the bulk of inner city auto's EV's within 10 years of the fast charging system going live, so by 2030.

      Diamler is wanting to lead the European charge with their 300+ kilometer EV-CUV

      This would seem to show that Tesla has had the desired effect of making a market changing revolution of how companies and governments see the future of transportation.
      Source PM
    • By William Maley
      As sales of compacts and sport cars begin declining, automakers are faced with tough decisions as to what in terms of production and workers. General Motors made the difficult decision to lay off 2,000 workers at two plants.
      Bloomberg reports that GM will be cutting the third shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). GM spokesman Tom Wickham said the company is treating the layoffs as permanent, although some workers will be able to transfer to other plants.
      The layoffs are due to sales of compact and sports cars going down due to consumers buying more crossovers. Sales of the Chevrolet Cruze dropped 20 percent through October, while the Camaro has seen a drop of 9 percent.
      On the same day, General Motors announced a $900 million investment for three plants - Toledo Transmission Operations, Bedford Casting Operations in Indiana, and Lansing Grand River. Wickham said this investment would not add any new jobs.
      Source: Bloomberg, General Motors
      Press Release is on Page 2


      General Motors today announced initiatives to strengthen and align its production output at key U.S. manufacturing operations. The plans include investing more than $900 million in three facilities — Toledo Transmission Operations in Ohio, Lansing Grand River in Michigan and Bedford Casting Operations in Indiana —  to prepare the facilities for future product programs.
      GM also announced plans to align production output with demand for cars built at the Lordstown, Ohio, and Lansing Grand River, Michigan, assembly plants. As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at both facilities in the first quarter of 2017. 
    • By William Maley
      As sales of compacts and sport cars begin declining, automakers are faced with tough decisions as to what in terms of production and workers. General Motors made the difficult decision to lay off 2,000 workers at two plants.
      Bloomberg reports that GM will be cutting the third shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). GM spokesman Tom Wickham said the company is treating the layoffs as permanent, although some workers will be able to transfer to other plants.
      The layoffs are due to sales of compact and sports cars going down due to consumers buying more crossovers. Sales of the Chevrolet Cruze dropped 20 percent through October, while the Camaro has seen a drop of 9 percent.
      On the same day, General Motors announced a $900 million investment for three plants - Toledo Transmission Operations, Bedford Casting Operations in Indiana, and Lansing Grand River. Wickham said this investment would not add any new jobs.
      Source: Bloomberg, General Motors
      Press Release is on Page 2


      General Motors today announced initiatives to strengthen and align its production output at key U.S. manufacturing operations. The plans include investing more than $900 million in three facilities — Toledo Transmission Operations in Ohio, Lansing Grand River in Michigan and Bedford Casting Operations in Indiana —  to prepare the facilities for future product programs.
      GM also announced plans to align production output with demand for cars built at the Lordstown, Ohio, and Lansing Grand River, Michigan, assembly plants. As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at both facilities in the first quarter of 2017. 

      View full article
  • Recent Status Updates

  • Who's Online (See full list)

    There are no registered users currently online