General Motors is to provide Opel with EUR4bn of investment through 2016 in a sign of commitment to its European operations.
The announcement of the funding was made at a General Motors Board of Directors meeting in Rüsselsheim.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“As a global automotive company GM needs a strong presence in Europe – in terms of design and development as well as manufacturing and sales,” said Dan Akerson, Chairman and CEO of GM, at a press briefing at Adam Opel Haus. “Opel is a key to our success and enjoys its parent company’s full support.”
GM said in a statement that it chose Germany for a regularly scheduled board meeting to get first-hand information on the progress on its 10-year strategy DRIVE!2022 and the challenging European automotive environment. The board also used the opportunity to meet with economists, unionists and politicians.
Dr. Karl-Thomas Neumann, CEO of Adam Opel AG, said: “This Board has once again made very clear that our 10-year plan DRIVE!2022, that foresees our return to profitability by the middle of the decade, has our parent company’s complete support.”
A large part of the investments are going into what GM describes an an ‘Opel model offensive’. Through 2016, Opel claims it will introduce 23 new models and 13 new powertrains.
Opel Supervisory Board Chairman Steve Girsky said, “The Board of Directors is here to underline its solidarity and support. Opel has been part of GM since 1929 and is today more than ever a decisive element for the entire company’s innovative power. This partnership is stronger than it has ever been.”
The public affirmation of commitment from GM to its loss-making Opel/Vauxhall operations comes after a period of speculation that GM could revisit plans to spin Opel off or hive it into a JV with strategic partner PSA.
Following the press briefing Dan Akerson revealed a piece of the Berlin Wall that belongs to Opel and will be placed in front of the Adam Opel Haus on Friedrich-Lutzmann-Ring. “This piece of the wall is a symbol of our corporate culture,” said CEO Dr. Karl-Thomas Neumann. “The symbol should remind everyone that we overcome any walls in our heads and those between different cultures and that we are now starting a new chapter in the history of Opel.”
