With General Motors in dire straits just a few months ago, it looked like the Opel/Vauxhall brand would be sacrificed as part of the company’s efforts to create a sound business model for the future. However, now GM has committed to the long term future of its European brands.
Thanks to an improved business environment, the GM Board of Directors has taken the decision to retain Opel and will begin restructuring its European operations shortly.
According to Fritz Henderson, the President and CEO of General Motors, the company’s restructuring plan will be presented to the German government and other governments in Europe with the hope of receiving favourable consideration. Mr Henderson stated that the goal has always been to secure the best long term solution for General Motors’ customers, as well as for employees, suppliers and dealers, and the decision that has been reached is the most stable and least costly approach to securing Opel/Vauxhall’s long-term future.
It is expected that the GM plan will involve total restructuring expenses of about €3billion, which is significantly less than the bids submitted as part of the investor solicitation. What’s more is that GM will work with European labour unions to develop a plan for meaningful contributions to Opel’s restructuring.
In addition, Henderson pointed out that GM hopes to build on its business in Russia and to resume working directly with GAZ in an effort to contribute to its modernisation and the joint development of the Russian vehicle market.
