GM Europe: fails to break even in 2011, targeting one-billion Euro profit in 2016
Opel introduces New Zafira Tourer and premium minicar; Chevrolet introduces New Malibu
2012/01/31
- Summary
- Model plan: GM Europe positions Opel brand up-market and Chevrolet as entry-level brand
- Production facilities: Constructing an engine plant with production capacity of 500,000/year in Hungary
- Russia: GM boosts production capacity by 75% to 350,000, having opened a new engine plant in Uzbekistan
- Sales volume: GM Europe increases sales volume by 6.7% to 1.319 million in January-September 2011, having an 8.8% share of the market in Europe
- Business results: GM Europe increases sales by 19% in January-September 2011, posting a loss of USD580 million (before interest and tax)
- (Reference) Sales volume by model and by country
Summary
With the objective of breaking even (EBIT before restructuring charges) in GM Europe by 2011, GM has been pressing ahead with its restructuring plan including a 20% reduction of production capacity of its subsidiary in Europe, Opel/Vauxhall. In November 2011, however, the company announced that it would not be able to break even in 2011 due to a slumping economy in Europe. It will further update its lineup and reduce costs in the future, aiming to move into the black earlier.
Opel/Vauxhall says that it would introduce 30 new models and models that will be face lifted by 2014 and will secure a profit of 1 billion Euros, profit margin on sales of 5%, and a marketshare of 8.5% (6.2% in 2010) in Europe in 2016.
Concerning the Chevrolet brand, GM aims to boost the segment-coverage ratio in Europe and to almost double the sales volume in Europe to 1 million in 2016. The company plans to boost the marketshare in Europe from 2.5% in 2010 to 4-5% in the medium run.
| Related Reports: | GM Europe (December 2010), GM in China (1：August 2011)/(2：August 2011) SAIC Motor (July 2011), GM (March 2011) |
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