According to German newspaper Handelsblatt, General Motors German unit Adam Opel can look back at twelve years of deficit. And now Opel is desperate to cut cost. First out the plant in Bochum.
GM second in command, Stephen Girsky,says that GM is desperate to turn the European operation around "The corporate headquarters is under great pressure to return to profits in Europe."
But Opel has not made profits for the last twelve years. Since 1999, the subsidiary has contributed to the GM's losses with $11 billion. Mainly because the market share of Opel has more than halved since 1999 and the manufacturing plants are not fully utilized. According to internal calculations, the utilization is currently only at three quarters and could fall further.
And now the plant in Bochum is under treath of being shut down.
"40,000 jobs in our county is attached to the plant," said Helmut Diegel, Executive Director of Industry and Commerce in Middle Ruhr.
To remedy the fincial situation and low sales, Opel is desperate to enter new untapped markets like China, but it is doubtful that GM will give Opel the green light. Reason being that GM is already making tons of money by selling Buick and Chervrolet in China.
Another example of GM's focus on the American brands as opposed to Opel, is the recent appointment of Alan Visser in charge of Chevrolet's global marketing. GM said that Visser will focus especially on markets outside North and South America. This means that Opel will need to find a new head of sales, marketing and aftersales.
German auto expert Dudenhöffer said the following about Opel's situation: "The Americans have lost money in Europe for more than a decade. "The bottom line is that the outlook for Opel is scary for the employees. You can not rule anything out."
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