Currently, every Chevrolet sold in Europe is imported from either Asia or North America. At the same time, the brand has been trending upwards when it comes to sales for the region. Also at the same time, Opel and Vauxhall sales (and profits) have been slumping, and GM plants all over the European continent are operating below full capacity. This causes the division to bleed more money than it needs to. And considering that GM Europe lost $256 million last quarter, changes are imminent.
Along with an outline of changes for Opel, Karl-Friedrich Stracke has reportedly gone on record in saying that GM Europe is “in discussions with management in Detroit and Shanghai to study whether or not there is merit in building Chevrolet vehicles in Europe to improve capacity usage.”
Continuing, “it is not a cost-cutting plan at all. It is much rather a comprehensive plan to quickly improve profitability, irrespective of if and how much the market is going to pick up steam. The plan will allow us to significantly increase our margins, market share and sales.”
We can expect to know more about what happns next after Opel’s Supervisory Board Meeting in June.