General Motors Allocated 4 Billion Euros For The Launch Of 23 New Opel Models
|   Friday, April 12, 2013
General Motors will invest 4 billion euros over the next three years to renew the range of Opel models. The massive infusion of capital reaffirms the confidence that the United Stated giant attaches to its German subsidiary, which is affected by significant losses.

The funds allocated by the parent company General Motors will help kickstart the manufacturer from Russelsheim. Upgrading the current production lines and launching the new models are the main priorities.
Before 2016 is over Opel will launch no less than 23 models and 13 new engines.

Dan Akerson, General Motors Chairman said that he was "fully supportive of the Opel turnaround plan" and that the Detroit giant "must have a strong presence in Europe and especially here in Germany."

Dan Akerson is "more convinced than ever" that the recovery of the German company Opel will bear fruit. Baptized the DRIVE 2022, the plan covers over a decade and provides a return to profitability by the middle of this decade.

Opel will reduce annual costs by 500 million until 2016. This amount will be added to the 300 million saved by drastically cutting off the current spending of the company. The first steps are closing the German plant in Bochum, responsible for the production of Zafira MPV, and the reduction of employees by some 2,000 jobs.

The recovery of the company is supervised by Karl-Thomas Neumann, the new Opel CEO, who in the past led the Chinese division of the rivals from VW and the supplier for the Continental component.

The European division of Opel has lost 18 billion dollars since 1999 to date, of which 1.8 billion last year alone. In 2012, the sales of Opel / Vauxhall on the European market decreased with 15.6 percent, down to 834,790 units.

The Opel restructuring plan is also based on the collaboration with PSA Peugeot-Citroen. Together they will develop technologies, engines and even new models, they will even share a platform and be built on the same production lines. In this manner, they will be able to reduce the development and production costs for both PSA and the German branch of General Motors.

With this investment, those at Opel unveiled a piece of the Berlin Wall, which will be placed in front of the Adam Opel Haus, on the Friedrich-Lutzmann-ring to symbolize the corporate culture of the German mark.
"This piece of the wall is a symbol of our corporate culture," stated 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."

The 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."

The forecasts for 2013 remain pessimist with officials of the company anticipating further losses, even in the context of rising of sales figures.
PHOTO GALLERY
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