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Opel Reiterates Profitability Goal for 2016
General Motors Co. affirms confidence in restoring profitability in Europe next year in spite of continued losses.
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General Motors Co. affirms confidence in restoring profitability in Europe next year in spite of continued losses.
Opel CEO Karl-Thomas Neumann tells reporters at the Frankfurt auto show the company is "on track" to reach its goal after reducing its third-quarter loss 85% to about €40 million. Opel has accumulated more than €14 billion in net losses over the past 14 years.
GM considered selling Opel in 2009. But it now considers the unit a "vital part" of the company and has begun introducing new products under a €4.4 billion investment plan. Opel Group sales jumped 14% in August, according to industry group ACEA.
Opel sales in January-August totaled 630,000 units compared with 627,600 in the same period last year. Gains in Opel and Vauxhall sales have offset GM's decision to withdraw its Chevrolet brand from the European market.
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