In an interview with AP, Opel’s boss admitted that it is finding itself weighed down by the weak German economy as its critical new Astra model hits the market amidst heavy competition and the company seeks to return to profitability.
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“I would call it frustrating, slow-moving,” Opel chief executive Carl-Peter Forster said about consumers’ reluctance to spend – particularly in Germany, Opel’s home market – during the course of the AP interview.
GM’s troubled European unit has seen substantial cost-cutting measures in recent years as well as attempts to introduce more exciting new products and reverse the trend towards falling market share – especially in Germany.
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There are high hopes for the Astra, just launched at Frankfurt, which will compete head on with the new Volkswagen Golf in Europe’s biggest market segment – the lower medium C-segment.
“We are at halftime,” Forster told AP. “We need to finish the drive.”
GM Europe’s boss, Mike Burns, recently admitted that GM’s European operations could lose up to $200 million in 2003, which compares to a loss of $549 million in 2002. Profitability is hoped for in 2004.
