General Motors’ plan to restore profitability in its Opel/Vauxhall arm in Europe has drawn some criticism, mainly for its aggressive targets. Nonetheless, Opel/Vauxhall has plans to make money for the General by 2022. Specifically, the company released a plan that has the two manufacturers targeting earnings of five-percent before interest and tax (EBIT).
According to Forbes report, GM president Dan Ammann insists that the plan is achievable, adding that “we’d like to get there sooner.”
The piece notes that Opel/Vauxhall lost $800 million in 2013 (and what’s looking to be over that amount just by closing the Bochum plant), but a $5.25 billion investment plant is expected to bring 27 additional Opel/Vauxhall models to market, as well as 17 new engines, between now and 2018.
Though General Motors is banking on its luck in Europe to turn around, the company continues to make strides in China.
“China continues to surprise on the upside, where the market will exceed 24 million units this year. China is very important and very profitable,” Ammann told Forbes.