GM has come up with yet another plan to make Opel profitable, but fail to predict when. The Detroit Free Press reports that analysts and industry experts do not give GM much hope.
GM on Thursday last week backed a plan to strengthen its loss strucken Opel unit, but according to analysts the road map lacks specific restructuring initiatives that are necessary to end 12 consecutive years of GM losses in Europe.
"It's hard to see a quick fix," UBS analyst Colin Langan said.
According to the plan Opel will close its factory in Bochum, Germany, after 2016, delay pay increases for German workers and invest in product development.
The plan would however not make any predictions when Opel could again be profitable.
For the first quarter of 2012 GM obviously had no fix as Opel lost $256 million.
GM CEO Dan Akerson expressed hope that Opel would see profitability within five years, but how many times have we not heard hopes like that?
"If you look out five years, I would be disappointed if we couldn't get to profitability (in Europe)," Akerson said.
Mr Anderson, please prepar to be disappointed.
