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Opel seeks 4% to 5% profit margin within 4 years, CEO Reilly say

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Opel seeks 4% to 5% profit margin within 4 years, CEO Reilly says

DECEMBER 18, 2009 08:16 CET

FRANKFURT (Reuters) -- Opel aims to generate an operating profit margin of 4-5 percent within four years, new CEO Nick Reilly told the Financial Times.

"If we are successful we should be at least 4-5 percent. Four to five percent gives a good return on investment and capital ... It shouldn't take more than four years," Reilly told the newspaper.

Reilly said Opel would face another tough year in 2010, when scrapping incentives around Europe expire. He said the carmaker aimed to break even by 2011 and make a "decent" profit from 2012.

Opel's focus should be Europe, Reilly said, but added the carmaker could later expand to South America, the Middle East or other parts of Asia, according to the paper.

Reilly plans to present a restructuring plan for loss-making Opel in mid January.

He plans to cut around 8,300 jobs from Opel's workforce of 50,000 in a 3.3 billion euro ($4.85 billion) overhaul that seeks state aid from countries with Opel plants including Germany, Britain, Spain and Poland.

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