Opel has been on a mission to return to profitable status in Europe. That includes cousin Vauxhall in the UK. Opel has so far made impressive gains in the European market, but the current Eurozone crisis, as well as turmoil in Russia, may begin to hold Opel back.
Speaking to Reuters, Opel CEO Dr. Karl-Thomas Neumann said the goal to turn a profit in 2016 is still very “ambitious.”
“Our plan to return to profitability in the course of the next year remains very ambitious. It certainly will not be a walk in the park,” Opel Chief Executive Karl-Thomas Neumann said in a letter to employees on Thursday.
Neumann warned employees of the economic conditions, and revealed the Opel and Vauxhall brands were still posting significant losses.
Despite a strong first half of the year, consumer confidence an uncertainty is beginning to take its toll.
“We need to compensate for the volume of sales that we lost there in other markets. This means that we will not be able to grow as fast as initially targeted,” said Neumann.
The 2016 Opel Astra will have a quite the job when it is officially introduced as the latest from the brand, and Opel is hoping with greater investment comes rewarding profitability from the compact hatchback.