If you haven’t yet read our piece outlining the problems faced by GM in Europe, then you’re missing out. But perhaps the best explanation of GM’s decision to shutter two of its European plants in 2015 came from CEO Dan Akerson during a conference call with reporters earlier this month:
“We have to match capacity with demand, and demand has been falling.”
Looks like The General will end up importing Opels and/or Vauxhalls from Mexico, Korea, and China to make up for the lost capacity when the market returns to “normal” levels (most likely around 2016). But will this have any ramifications on the public image and perception of Opel or Vauxhall, especially after this commercial?
Comments
How about just build them here in the U.S?
Shipping Costs combined with the still relatively expensive U.S labor force. Forget it.
Does anyone else think this may have something to do with the deal GM struck with PSA Peugeot Citroen? It’s possible the Opel/Vauxhall manufacturing will be shipped off to PSA plants. The first platform shared models from the General and PSA will appear in 2016, one year after Ellesmere Port and Bochum shut down. Coincidence? I think not.
Maybe, but I think the GM-PSA venture only extends as far as combining the purchasing power to lower costs on parts like bolts and chips. I dont think the alliance is that deep and will probably end once Europe is back on their feet.
Oh it’s deep (TWSS) and includes platform sharing… Which unfortunately complicating everything:
http://gmauthority.com/blog/2012/03/gm-peugeot-partnership-both-simplifies-and-complicates-future-product-plans/
It definitely brings an interesting twist on the future of the Vauxhall and (especially) the Opel brands. Either GM will have to find a way for Opel and Peugeot/Citroen to coexist peacefully, or they’re going to have to deal with a TON of redundancies in the market. My bet is that more PSA-based Chevy and Buick-badged compact models will make their way Stateside after 2016.