Photo: original image created by autoevolution
GM is doing just fine in the US market and even in China, but the struggling European market that’s traditionally also more competitive has always made things hard for the Opel/Vauxhall European sub-brand.
The company’s CEO Karl-Friedrich Sracke has issued an employee newsletter that comes with the boldest of claims - that the will hit an impressive but probably overly ambitions profit target of €1 billion ($1.33 billion) by 2016. This is coming from a company which only last year lost more than a billion euros.
"My vision is as follows - Opel/Vauxhall will make a profit of 1 billion euros from 2016, a return on sales of 5 percent and have a market share of 8.5 percent in Europe," the statement said, according to Automotive News.
In order to increase profits, sales will have to be boosted together with Opel’s market share. Some cost cuts through plant closures and employee layoffs are also on the horizon, since the European market is expected to drop next year.
"My vision is as follows - Opel/Vauxhall will make a profit of 1 billion euros from 2016, a return on sales of 5 percent and have a market share of 8.5 percent in Europe," the statement said, according to Automotive News.
In order to increase profits, sales will have to be boosted together with Opel’s market share. Some cost cuts through plant closures and employee layoffs are also on the horizon, since the European market is expected to drop next year.
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