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GM CEO: Opel to Live On as European Brand

After General Motors announced its decision to keep Opel and scrap the sale to Magna International, some people expected to see the US-based manufacturer expanding the German brand at a global level and use it to reach new markets. Such a scenario was rejected by GM's CEO Fritz Henderson, who emphasized that Opel will remain an European brand for the time being. He reckoned however that plans might be a bit different in the future.

"We have a strategy in Brazil around Chevrolet ... It's a strong brand; the last thing we usually need is another brand," he was quoted as saying by Reuters.

"Opel is a regional brand and I don't see that changing. That doesn't mean I'm closed to ideas about how it can be used elsewhere; but the measure of the Opel brand's success will be Europe, because if you don't win here all the discussion of exports will be irrelevant."

GM's CEO traveled to Germany on Monday to start negotiations on Opel's restructuring process. German officials emphasized that, if any funds are to be approved for reorganization, the money must be spent in Europe, and sought assurances that GM wants to separate its business from Opel's. This way, Berlin wants to be sure that no money goes to Detroit, Reuters explained in the report.

The recent media reports hinted that GM wants to cut Opel costs by 30 percent and cut around 10,000 jobs at Opel's European operations. Furthermore, Bob Lutz, currently serving as GM executive, might be appointed new Opel CEO and support Opel's reorganization. The US-based carmaker is yet to comment on the reports.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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