Opel To Build In Germany A Buick Model Exclusively For The U.S. Market
|   Monday, April 07, 2014
Opel will introduce two new models at its plant in Ruesselsheim in the second half of the current decade, informs Just Auto. One of them is a Buick, with each copy produced to be exported outside of Europe, to the United States market. The second model will be manufactured at the main plant of the German brand and will be the future flagship of Opel.

Besides the two models, the Ruesselsheim plant will continue to build the Insignia, in all its versions, alongside the Zafira Tourer, which will go into production in January 2015, after the production lines will be moved from Bochum.


General Motors will invest 245 million euro (336.62 million dollars) in the Opel plant in Ruesselsheim to accommodate production of the new model. Details of this model will be published only at the end of the year, according to Just Auto, the Americans at GM preferring not to reveal anything for reasons of competitiveness.

A GM source who revealed this information said that the decision has already been approved by the supervisory board and management of the Detroit company and that production will begin from the middle of the decade.

Wolfgang Schafer-Kulga, head of Opel's workers council and deputy chairman of the supervisory committee of the German brand, says that decisions about the future Buick model have already been discussed in the collective agreement between the union and the group management.

However, the Buick model introduction into production at the Opel plant will be carried out shortly after Opel leaves the Chinese market, where investments required to increase sales would be too large relative to the benefits.

Instead, GM will focus on other brands it sells in China, such as Buick. In 2013, with 22 dealerships, Opel sold 4,365 vehicles in China, while Buick sold 810,000 units in the same market with the help of 650 dealerships.

A similar decision was applied in Australia. Opel abandoned it after only one year of entry on that market. Therefore, GM could call on the local Holden brand to sell its models.

"With the investment in a new, additional model for Ruesselsheim, we will take another important step in our multi-billion dollar model offensive with which we will pave the way for Opel's profitable growth," GM President and Opel Supervisory Board Chairman Dan Ammann stated in a statement.

The company declared it decided to stop all efforts of expansion plans into the China market because such a measure would cost a lot and bring little.
"This is a long overdue decision," declared Opel CEO Karl-Thomas Neumann. "It would have cost hundreds of millions of euro to raise awareness of the Opel brand and to expand the distribution network."

Construction of the Buick model in Germany will improve manufacturing capacity utilization. This way, GM is trying to cut losses from its operations in Europe.
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