Hiking Sales in Russia, Turkey Important to Opel Overhaul

Interim CEO Thomas Sedran tells WirtschaftsWoche that Adam Opel plans to increase its presence in Russia and Turkey as part of its restructuring goal of hiking sales outside western Europe. He declined to provide details to the German magazine.

Opel aims to boost its sales in China from the current level of 5,000 units per year, according to Sedran. But he notes that doing so would not do much boost the company's European output because a significant volume increase would require Opel to build vehicles in China.

Sedran didn't say whether the company was considering that option either by using a Chinese factory run by parent General Motors Co. or erecting its own.

He predicts Opel's capacity will be aligned with demand after its assembly plant in Bochum, Germany, closes in 2016. By then the company expects that demand for its new models and the recovery of Europe's auto market will make fuller use of its remaining facilities.

Sedran also says that GM's talks with new alliance partner PSA Peugeot Citroen about joint product development are on track and likely to conclude soon. He reiterates that the two companies do not plan to manufacture vehicles together.