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Opel becomes more efficient and solid

3K views 28 replies 15 participants last post by  Bravada 
#1 ·
Opel Media Online
2014-07-21

- Newly-established Opel Group reflects widened scope of European activities
- From now on, Opel’s leadership team steers General Motors’ European business including Russia from the Opel Group
- Opel Group assumes economic responsibility for all GM brands in Europe
- Adam Opel AG enjoys more solid financial basis
- No effects on quarterly reporting in Europe
- Employees’ rights of co-determination contractually guaranteed



Rüsselsheim. Opel improves its organizational structure: effective 1 July 2014, the newly-established Opel Group assumes full responsibility for General Motors’ business in Europe. Through this new entity, the company aggregates the responsibilities for Opel/Vauxhall as well as all other operations of GM in Europe – including Russia. Led by Dr. Karl-Thomas Neumann, the management board of the Opel Group, which is almost identical to the so-far existing management board of the Adam Opel AG, will steer GM’s European business. The new entity, similar to the Adam Opel AG, will be based in Rüsselsheim.

With this organizational change, the Opel Group will also take over economic responsibility for all GM brands in Europe. Consequently, the Adam Opel AG will be able to strengthen its financial basis. The operative business of the Adam Opel AG remains unaffected by this reorganization.

Dr. Karl-Thomas Neumann, CEO of the management board of Opel Group GmbH: “Today, we are more than just Opel/Vauxhall. With the Opel Group, we align our organizational and legal entity structure in Europe with the business operations. We streamline our decision making processes and increase our efficiency. In brief: this reorganization is an important step in implementing our business plan DRIVE! 2022 and another sign of confidence of our parent company GM.” By 2022, the company aims to gain market share of 8 percent in Europe, increase the profit margin to 5 percent and further improve product quality as well as customer and employee satisfaction.

The employees’ rights of co-determination are contractually guaranteed in the new organizational structure. Dr. Wolfgang Schäfer-Klug, Chairman of the General Works Council: “We ensured that the right of co-determination is safeguarded to the same extent despite the organizational changes.” In reference to the foundation of the Opel Group with its about 100 employees, Dr. Schäfer-Klug said: “We are happy that Opel’s position has been further strengthened. From Opel’s perspective, the reorganization of the European business offers more opportunities for growth and employment.”

The new Opel Group is a testimony of how important Opel has become for General Motors. The Opel leadership has taken over numerous GM responsibilities in Europe over the past two years. Among these are full responsibility for Russia’s growing market and the planned manufacture of selected cars for Buick in the US and Holden in Australia and New Zealand.
 
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#6 · (Edited)
Adding Russia to the EU sales, won't much difference to the numbers.

Opel of Russia sales
June sales Opel 4,489 -31%
YTD sales Opel 33,514 - 15%

Mind you all the Russian sales for American automakers sales are falling in Russia, it must have been something Obama said?

Russia June sales
Jeep sales up +57%
Cadillac sales -10%
Opel sales down -31%
Chrysler down -47%
Chevrolet sales down -47%
Ford sales down -53%

RHD UK will still be General Motors biggest market that accounted for nearly 50% of GM Europe sales in some months like March.

General Motors of Europe Opel/Vauxhall June 2014 sales
No1 RHD Vauxhall UK 28,304
No2 LHD Opel Gemany 22,191
No3 LHD Opel France 6,633

Russia LHD Opel Russia 4,489 sale is a small declining market for GM as things get a bit frosty, Lada sales not getting hit in US as there are not any..

2022 does sound like a more realistic goal to turn Opel around in Europe in sounds honest, nobody knows what will happen by 2022 as peak oil dips, oil will be in a big oil fields dip as China, India & Africa sip more and more oil, and become harder to pull out the ground who knows what will happen? Chevy Volt & Ampere just got kicked out of Europe as masses can't afford the expensive green technology sales are poor 332 sales to 731,000,000 million Europeans was not good not good sign for the future, if buyers can't afford the green technology..

FWD Opel $20 billion losers has nothing in their European line-up that l would ever buy personally, thats all my fault l suppose. I have driven small FWD cars in Europe they are cramped, uncomfortable on long journeys, under powered, noisy very high revving on the highway, and very fatiguing to drive want to steer pull outwards on roundabouts, l need another vacation to get over driving one, can't wait to hand the keys back.
I get back home can drive a RWD or pick-up 500 miles on a highway in total comfort, its some much more relaxing so low-reving quite, stress free drive a dream to drive long distances in.

Only thing l would ever buy from General Motors Europe is fuel efficient RWD car or light duty Chevy pick-up truck, GM don't offer a high profit yield light duty pick-up truck or fuel efficient RWD to 731,000,000 Europeans in Europe like they do in all the other big continents Asia, America's, Oceania & Africa, so without high profit yielding vehicles in GM Europe, 5% profit margin on small FWD cars is going to be tough to achieve without a big drop off in sales, Mokka Insignia & Adam can attract a premium prices will make this goal.

I wish Opel the best of luck for the future they are gonna need it, l hope their 2022 plan is a success.
 
#18 ·
Russian sales are about to become totally irelevant, given what's happening politically in the ex-Soviet nations.

Back on topic, it seems a good thing that just one organisation is responsible for all GM sales in geographic Europe - at least then there're only one ass to kick when it goes wrong!

Starting from where we are today, it'll be interesting to see where Opel/Vauxhall takes GM Europe.

Perhaps if they rebadged the ATS and CTS as Opel/Vauxhall Diplomat and Opel/Vauxhall Commodore it would provide the RWD models that GMI'ers are so adamant that Opel/Vauxhall needs.
 
#21 ·
This is primarily aimed at folks like Toto and our other European GMI-ers, do you think Opel having responsibility for Chevy in Eastern Europe and Cadillac in the rest of Europe will end up being a good thing? Will they be able to increase sales from miniscule/non-existent, to something more respectable?
 
#24 · (Edited)
GM Opel will give GM Cadillac all the support that GM US gives to non-US GM brands. Fourth fifths of eff-all. GM's problems ARE NOT just marketing. They also don't have product suitable for the market o/s. It isn't anti-Americanism mostly - most non-German Euros also don't like Germans especially (two world wars will do that); just their cars.

GM needs to decide if they want Cadillac to be a world brand, or a 'World Series' brand i.e. coccooned in the US completely irrelevant to everyone not a US citizen. If they don't build smaller-engined, RHD and diesel ATS and CTS as a priority then they are half-assed and better stick to low-hangiing fruit in America and China. They will sell a few CTS-Vs and ATS-Vs, Escalades to cultists, ex-pats or Ameriphile enthusiasts outside continental North America. Everyone else will step around them. The world will be slightly familiar with them from movies and popular culture ('didn't Elvis drive Cadillacs.....'), but not know anything about them, like now.

If GM is serious, they will build Cadillacs the world wants, not what they think they can fob off to them out of the US partsbin. Incidently the better cars they sell in Europe, could also bolster their image in the US.......

That means a differently-equipped vehicle for other continents. Then they will set up a dedicated retailing/marketing arm to handle the brand's image, product placement and ensure it's customers in those regions don't have to call a support line in Manilla with issues........ Otherwise, stick to the US, bulk discounts, small margins, fleet and livery, cheap lux cars and suffer the inevitable consequence of total domination by import brands in the US who are preprared to put in the hard yards, take the losses from properly establishing themselves in early years and invest in dealership experience, aftermarket and properly massaging customer's egos.

Jaguar is a salutary warning - nearly 7% improvement on as limited a lineup in many respects than Cadillac, with no SUVs and not even a small sedan - yet! Importantly, probably as expensive or more expensive cars, and no rebates. I saw an XF coupe today - I just went, wow. And it was a base V6... I've seen new ATS, CTS in person along with Escalades and XTS. Nothing in Cadillacs lineup as a non-American makes me go 'wow'.
 
#25 ·
Cadillac's future in Europe does not depend on the title of the executive responsible for that, but on GM's investment decisions. Cadillac needs BOTH the product AND the sustained marketing push to make it here. The investment to be made is humongous - starting with diesels and other fuel-efficient options (hybrids, smaller-displacement turbos, lightweight engineering etc.), through a whole new distribution network (those can just as well be existing Opel dealers, including those who have been foolish enough to believe GM the last time and actually built dedicated Cadillac showrooms / sales spaces to GM's specifications - but apart from those, they need the real estate and facilities befitting the premium brand), massive marketing push directed at the right buyer groups (i.e. no TV advertising or billboards, but a concerted effort to make "Cadillac" a brand mentioned alongside Jaguar, BMW, Mercedes, Audi and Volvo when talking about premium cars among people who actually buy them - PR & events mainly) and great sales training to make sure none of the preciously acquired leads is let go.

This requires exceptionally good planning and results tracking, in-depth knowledge of the market and all the expertise areas involved, supertight control on all levels (i.e. it is not enough to just drop a diesel into a Cadillac body, this needs to be cutting-edge car with regard to performance, handling, weight, fuel consumption and emissions [those are the basis for taxation in many countries of the EU]) and generally a brilliant effort on every front managed by a committed, involved and knowledgeable management with exceptional attention to, interest in and understanding of detail. Otherwise, this will be a massive investment into burning money in a huge furnace.

The above is what GM simply still doesn't have. Through many years of acquired expertise and sheer market share, they manage to churn out mass-market cars and several specialty ones (Corvette, pickups) that sell reasonably well, but for GM to conquer a new market segment is as rare as polar bear sighting on the streets of Mombasa. And, what is worse, there are little signals that this is changing in any way.
 
#27 · (Edited)
This pretty sums up everything I posted about Cadillac in Europe. I will save this post for future quoting. I am only sceptical about those Opel dealers. Most of them are stuck in the 90's. Firstly I would have to see their progress before giving them Cadillac.
 
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