Opel says it cannot hold out for European recovery to bear fruit before it implements its long-awaited recovery plan.
Addressing delegates at today’s (21 June) Automotive News Europe Congress in Monaco, Opel CEO, Karl-Friedrich Stracke, said in a frank address the troubled automaker would unveil its reboot plan later this month ahead of any – eventual- European rebound.
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“I will not beat around the bush – Opel has been hit hard by the economic crisis in Europe,” he said. “We are planning to announce our new plan in order to bring Opel back to profits at the end of this month.
“Let me be very clear – our strategy will be to get our business back to sustainable profitability. We can’t wait for recovery on the European market – the next few years will be unpredictable and we need to get our business in shape.”
Any recovery plan will inevitably attract intense scrutiny from Opel’s unions, who are already twitchy following the automaker’s announcement it would concentrate future Astra production in the UK and Poland, but also from its recent alliance with PSA Peugeot Citroen.
“We will make our first moves in logistics and purchasing with PSA and we look forward to much more to come,” said Stracke. “We have made great strides forward working with the Works Council and IG Metall [union].
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By GlobalDataThe Opel CEO reiterated the manufacturer would be adding “significant” financial firepower during the next few years and although not revealing precise details, said it would re-enter some segments.
“We will make a significant investment in the Opel/Vauxhall portfolio,” he said. “We have noticed some of our key competitors have announced plans to cut their products, but I believe product is key to future success.”
Stracke also issued a plea for governments to take more of a lead when it came to alternatively powered vehicles, insisting the automotive industry should not be left to assume the financial burden on its own.
“We are investing massively in a wide range of solutions for electrified propulsions,” he said. “But carmakers alone can not shoulder the responsibility for getting more electric vehicles on the road.
“We as an industry need financial support to…provide technical development and make electric cars more affordable. If Europe is serious about moving away from fossil fuels, only with wide-scale adoption and large-scale production can we bring prices down in a short time frame.”
