Opel’s CEO, Dr. Karl-Thomas Neumann, was interviewed by CNBC and asked some tough questions about breaking even or even being profitable, especially after closures and cuts. He says Opel has “a clear plan to get there by 2016.”
So what are the biggest barriers for Opel at this moment? Does Opel need to cut capacity, especially with the poor economic situation in Russia? Neumann says cutting capacity is not the answer − growing is, which is why Opel is investing €4 billion into its new portfolio. Opel is investing a lot in the brand including a large advertising budget, including a campaign with Claudia Schiffer . . . yet, insists the interviewer, does Opel still need to cut more capacity in Europe?
Again, Neumann doesn’t think so. He wants to grow Opel’s market share from 6 percent to 8 percent by 2022 (of special note: Spanish sales increased 40% this year). Simply put, Opel has a lot of initiatives to fill out its capacity. Material costs are also being reduced, and when it’s not possible to use something GM’s global operations, there’s always the partnership with PSA (Peugeot-Citroen) to ensure that every Opel is built on massive volume platforms.
Check out the full interview below.