Opel Prepares for Sales Drop This Year

Although Opel was expected to perform better now under the guidance of the "new" General Motors, the German brand predicts a drop of 9 percent this year to 836,000 cars. However, CEO Nick Reilly says the carmaker will retain its 7 percent market share and looks forward to 2011 when things are going to be much better for GM's European unit.

In an interview for Frankfurter Allgemeine Zeitung, Reilly emphasized that 2011 is likely to be much better in terms of sales, with figures to reach 1.25 or 1.30 million sold cars at a global level. The European market on the other hand will remain the same, Reilly believes.

As for the future product plans, Opel is getting ready to receive two minicars developed by General Motors for the European market, but only a few details are known for the time being. The first model will be a direct competitor to the Mini. Built under the Vauxhall/Opel badge, it will be a hatchback internally labeled "fun and fashion". The other will be a budget priced city car, built under a still undisclosed badge.

Opel will also build a small car in Eisenach that will join the range below the Corsa. Production is scheduled to begin in 2013 and the company will invest up to EUR90 million to modify production lines for the new model.

“This is a further milestone in the growth strategy for our business,” said Opel/Vauxhall CEO Nick Reilly. “Our EUR90 million investment in the Eisenach plant will significantly strengthen its role within our European manufacturing network, and will offer customers a brand-new model with innovative technology and exciting design.”