Bloomberg News

GM’s Opel on ‘Positive Path,’ Evaluating Plans to Ensure Profit

December 15, 2011

Dec. 15 (Bloomberg) -- General Motors Co.’s Adam Opel AG unit is evaluating strategies to ensure that it’s profitable even in a slowdown, the European company said today.

Opel is on “a positive path,” its executive board, supervisory board and workers’ council said.

“Thanks to our excellent model line-up, which will be modernized even further with six new introductions in 2012, we are sure that we can build on our upward market trend,” the three bodies said in a joint statement.

Opel said it issued the statement in response to a report in Germany’s Capital magazine citing an internal evaluation by the company as suggesting it would record a 1 billion-euro ($1.3 billion) shortfall in operating profit in the coming year.

Opel will produce 1.4 million vehicles in 2012, less than anticipated in a plan to lift output to 1.6 million units by 2014, Capital said. Plants in Bochum, Germany, and Ellesmere Port, Britain, may close as developments of the Astra model are scrapped, it said, citing people with knowledge of the business.

--Editor: Jasper.

To contact the reporter on this story: Alex Webb in Frankfurt awebb25@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus