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GM to Invest $5.2 Billion in Opel

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Although Opel has been bleeding more money than it is taking in, GM remains committed to the European division and has announced plans to invest $5.2 billion in Opel by the end of 2016.

2013_Opel_Cascada

Although Opel has been bleeding more money than it is taking in, GM remains committed to the European division and has announced plans to invest $5.2 billion in Opel by the end of 2016. The investment will primarily go to new model launches for Opel and its sister brand Vauxhall.
GM CEO Dan Akerson stated, “As a global automotive company, GM needs a strong presence in Europe — both in design and development as in manufacturing and sales. Opel is key to our success and enjoys the full support of its parent company.”

2013 Opel Adam

GM’s board is hard at work to try to turn Opel around and make it profitable. Opel has lost $18 billion since 1999, with $1.8 billion alone lost last year. GM plans to introduce 23 new or refreshed Opel/ Vauxhall models and 13 new powertrains by 2016. If Opel’s 10-year plan, called DRIVE 2022 succeeds, then the brand will become profitable by the middle of the decade.

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