It is no secret that General Motors’ Opel/Vauxhall operation has been in poor financial shape for awhile, but the turnaround also has been progressing quite nicely, thank you. The division’s CEO, Karl-Thomas Neumann, continues to feel the company is on schedule to hit its financial targets by 2016 and be in the black.
“Breakeven is a great thing, it’s a huge step,” says Neumann. “But if we always break even, I think that wouldn’t be too exciting for investors. It will take a long time until Europe returns to pre-crisis levels and the Russian market could still go down.”
According to Inautonews,com, there still are several obstacles: most forecasters predicted the overall European market would grow faster than the current two-percent rate, and Russia − a huge market − has been hit by the political crisis in Ukraine as well as a weak Ruble.
However, Neumann expects the two brands to secure more market share as it pushes towards new segments (expected to compensate for Chevrolet’s exit from most of Europe). It would also achieve economies of scale by depending more on GM’s global platforms and portfolio.