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Posts Tagged ‘opel turnaround’

PSA Lays Out 3-Stage, 10-Year Roadmap for U.S. Return

CEO calls for “100% electrified” line-up by 2025.

by on Jan.19, 2018

PSA CEO Carlos Tavares has been credited with turning around the near-bankrupt French company.

After a 26-year absence from the North American market, French automaker PSA Group is formalizing plans to reenter the market, though in a series of interviews and appearances in Detroit this week, CEO Carlos Tavares made it clear he’s not in a rush.

With the once nearly bankrupt automaker now flying high in most of its other markets, Tavares outlined a three-stage process that will take as much as a decade to complete. In the meantime, he is focusing on several other critical endeavors, including the revival of the Opel/Vauxhall operations PSA purchased from General Motors last year, as well as a plan that call for the company to have 100% of its products electrified by 2025.

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“When we go into a country we try to be really cautious,” Tavares said during a Thursday roundtable with a small group of journalists, one of several meetings he held in connection with the annual North American International Auto Show. The plan for North America is “more frugal, more humble” and will require only “a small investment,” he explained.


Opel Speeds Up Restructuring, Will Close German Plant Early

GM takes advantage of union misstep.

by on Apr.19, 2013

An Opel Zafira body moves along the line at the Bochum assembly plant.

General Motors’ long-troubled Opel subsidiary plans to close an unneeded plant in Bochum, Germany by the end of 2014, a move that will come several years ahead of its original plan thanks to a major misstep by the powerful metalworkers union IG Metall.

The move could be critical as Opel moves to speed up a broad restructuring strategy aimed at capping what is likely to be a 15th year of massive losses that have led some analysts to call on GM to close or sell off its European operations.

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Opel is just one of a number of European makers aiming to rein in excess capacity at a time when the Continental auto market has sunk to its lowest level in decades – Ford, for example, will shutter two British facilities and a larger plant in Belgium in 2014. But the closure of Bochum, where 3,000 are currently employed producing models like the Zafira van, would mark the first time a major auto plant has been shuttered in Germany since the end of World War II.


Union Pay Freeze Could Be Crucial for GM Europe

Workers trade wages for job guarantees.

by on Mar.01, 2013

GM is counting on new products like this Opel Adam -- and cost-cutting -- to help it reverse 13 years of European losses.

IG Metall, the powerful German metalworkers union, has agreed to a pay freeze for 20,000 union members employed by Adam AG Opel, General Motors’ principal European subsidiary. The move could be a critical next in the long-sought turnaround plan for GM which has suffered 13 years of worsening losses in Europe.

In exchange for the pay freeze, the automaker has agreed to hold off on layoffs and will continue operating a plant in Bochum, Germany that was slated to close permanently.

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German pay increases, put on hold in November as part of the negotiation process, will be postponed through 2015, the Ruesselsheim-based unit said in a statement today. GM will refrain from forced firings through 2016 as part of the deal, according to a statement posted on the German union’s web site.


Madam, I’m Adam

Critical Opel minicar makes Paris debut, targets Fiat 500.

by on Sep.27, 2012

The new Adam Opel is one of 23 new models the maker promises over the next 4 years.

Opel had the rapt attention of its audience as it pulled the covers off the new Adam minicar to help kick off the 2012 Paris Motor Show Thursday morning.

Make that rapped attention, though it was clear by the puzzled look on the faces of most of the journalists attending the early morning preview that the fast-paced presentation by a half-dozen rap artists was a lot more difficult to follow than the usual executive speech.

No matter, the new Opel Adam is aimed at a decidedly different audience – though it could be one of the most important models to emerge from the German maker’s product development studios in a number of years.  The Adam is the first of a promised 23 vehicles the General Motors subsidiary will roll out over the next four years in its effort to turnaround years of devastating losses.

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If a first glance sparks a sense of déjà vu that’s no surprise.  The Adam is clearly aimed at such popular European microcars as the Fiat 500.  It boasts a similar, tall hatch-like shape, with a chrome accent line wrapping around the cars “greenhouse.”


GM Won’t Abandon Opel

Maker reveals 23 new models in the works.

by on Sep.20, 2012

GM CEO Dan Akerson (r) and Vice Chairman Steve Girsky driving a classic 1960 Corvette.

Despite mounting losses that could near $2 billion this year – and increasing demands that it abandon its troubled European operations – General Motors insists it remains committed to a turnaround at the Opel brand.

The maker hopes to reverse what will likely be its 14th consecutive year of losses by rolling out a procession of new products – at the same time it takes steps to slash costs and reduce excess capacity.

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But critics contend GM could be running out of time and suggest that its fiasco in Europe is a major factor suppressing its stock price and holding back a long-sought upgrade in its debt rating.


GM Set to Slash Opel White Collar Jobs

Desperate automaker looking for options.

by on Sep.13, 2012

Opel continues to struggle for a turnaround.

Adam Opel AG, the heart of General Motors European operations, is apparently preparing to take a meat ax to its administrative staff in Germany.

Opel, which is now under new management following the latest corporate shake-up, wants to cut 1,000 of 3,300 administration jobs at its Ruesselsheim, Germany, headquarters, according to Frankfurt Allgemeine Zeitung which cited two supervisory board members who didn’t want to be named.

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GM recently put its Vice Chairman Steve Girsky in charge of coming up with a turnaround plan for its European operations – hoping to stem losses that are expected to reach between $1.5 billion and $2 billion this year, the 13th consecutive annual loss for the subsidiary.


Fixing Europe a Top Priority, Says GM CEO

Maker has had no discussions with White House about selling government stake.

by on Jun.12, 2012

GM CEO Dan Akerson answers a question following the maker's 2012 annual meeting.

The unsettled economic climate in Europe has undermined General Motors’ efforts to revitalize the company’s operations, GM Chairman and Chief Executive Officer Dan Akerson said Tuesday.

Fixing GM’s operations in Europe remains the company’s top priority, added Akerson following the maker’s annual meeting.  He noted GM of Europe has succeeded in striking new labor agreements with unions in both Poland and Great Britain and is “talking with unions in Germany” about possible concessions that could prove critical to GME’s turnaround.

Analysts believe the maker would like to close at least two of the plants operated by its European Opel brand but taking such a drastic step would be difficult without union cooperation due to laws that generally limit plant closures and job cuts.  Meanwhile, speaking with reporters, Akerson said GM sees cost-cutting as just one step in the European turnaround effort.

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“Underscoring our commitment to Opel, we’re investing billions in new models like the Mokka, which is the first contender from a German manufacturer in the growing sub-compact SUV segment. We’re making this investment even as we address overcapacity and high fixed costs in the region,” Akerson noted.