Plans to boost Opel by exporting cars to new markets are expected to help Vauxhall’s Ellesmere Port plant in northwest England.
GM Europe boss Nick Reilly said that Opels will start to be sold in countries like Chile, Israel and Australia. The target is to sell more than 100,000 Opels outside Europe with right-hand drive Astras for Australia coming from Ellesmere Port.
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“Opel is the obvious brand for us to develop globally and in countries like Australia it will sit above our Holden brand,” he said.
Opel will enter the Australian market in 2012 with Insignia, Astra and Corsa among the model mix.
Other markets under consideration for Opel include Argentina, the Middle East, South Africa and China.
Reilly said that he expected GM Europe to be in profit by 2012 and that the underlying business “has a chance to break even in 2011 not counting restructuring costs.”
The company is closing its Antwerp plant, slimming down production at Bochum in Germany and losing 8,000 workers – 5,000 of those have already gone, he said.
“This means we can be profitable at much lower production levels than before and be a strong contributor to GM again.”
GM Europe had reduced its capacity by 20%. “Our current, conservative projection is that by 2012-13 and on a two-shift basis our plants would have to work at 110% to meet demand and at 85% working three shifts. That’s not a bad position to be in.”
