After posting financia losses for the last decade, General Motors’ European subsidiary, Opel-Vauxhall, has been vehemently fighting to turn itself around. The ultimate goal is to achieve a 5 percent EBIT (Earnings Before Interest and Tax) margin by the year 2022. But before it can do that, Opel must first break even.
GM has been projecting for Opel to break even financially for the 2015-2016 timeframe. That goal now appears to be in sight, with Opel Group CEO Karl-Thomas Neumann recently stating that the subsidiary has beaten all internal targets since he took over as CEO four years ago this month. And though Neumann is confident that 2016 will be successful, he says that the final miles of any race are the always the most difficult.
“Since I arrived here we’ve met our [internal] budget and overachieved on our targets for 11 straight quarters”, Dr. Neumann told Auto News. “I always compared it with a marathon, the further you go, the harder it gets. We can see the target now. We have built the brand. We have fantastic product. We will fight for these last miles and get across the finish line.”
Though Opel has posted losses for the last decade, the losses have been dwindling — thereby showing progress to reward parent GM for its huge investment: