While General Motors takes steps to turn Opel, and Vauxhall, into profitable operations this year in Europe, its largest rival has announced it will begin some major restructuring on the continent.
As reported by Ford Authority, Ford Europe has announced it will cut hundreds of jobs and slash some of its less-successful models. Notably, the brand’s MPV lineup has suffered over the past year.
Although auto sales have picked up dramatically in the United States, the stellar results haven’t exactly been mirrored in Europe. Sales are up, but it follows a dry six-year slump, which sent demand plummeting for new vehicles.
The question is, will General Motors follow suit? So far, the company has been quiet on this front. Although we don’t possess GM’s books, it would seem the automaker is content on investing into both Opel and Vauxhall to create a sustainable future for both brands.
General Motors has also already done its part by largely pulling the Chevrolet brand out of Europe, and leaving the space wide open for Opel to flourish, which seems to be working. Up next will be a full-scale entry of Cadillac into the European marketplace, which is still a ways off.
Comments
They for the most have scales back with the pulling of Chevy.
I expect they will continue with Opel and Vauxhalll as they are now. There is no room for much growth in Europe but there is room for better profitability. Leveraging out Opel and Vauxhall with Buick and Holden will bring the profits and growth sharing in the models also sold in China.
The Gravy days of Europe are over and with the economy as it is making sure to keep profits up with the present volumes will be key.
Also look for key products like the Corvette, Camaro and the Cadillac line to be sold there in some kind of hybrid like dealer network. It may be put in with Opel or it could be done with a private distributor. It will not be like they tried before.
There is still more fat to cut. We’re logistics ever combined with PSA? Maybe the PSA J/V MVPs shouldn’t come to market or sold in small batches; instead, four Buick/Chevrolet SUVs should serve as the back bone of the future Opel and Vauxhall.
In addition, more jobs can be cut if greater cooperation takes place between Opel and Buick on a global level going so far as to combine books and the creation of a new division.
Hence my point of better profitability.
They will make changes with what they have but not cut any divisions etc.
As for the SUV plan, No! Now if you meant CUV plan yes. There is a difference in size and the larger models would never do as well.
Buick, Opel, Vauxhall and Holden will continue to morph and merge into a mega brand globally and it will let them cater to all the brands better. It will also prove to be more profitable.
Chevy will remain the focus in NA but The other branch here will become more of the global back bone of GM over time.
I do not see GM scaling back in Europe. Like the article says they have already taken steps to get back to profitability such as pulling the Chevrolet brand, closing plants and pulling out of Russia. Ford was content to stay in Russia which is no doubt putting pressure on their bottom line.
I think GM Europe will be profitable by the end of 2016 as they predicted. Opel and Vauxhall are both showing good signs of turning around their sale with Europe slowing getting out of their 5+ year sales slump.
There is no need for further retraction.
It is hard to improve by going backwards.