Opel to Return to Profit This Year

Opel is finally back on track after the General Motors - Magna saga and, as far as the company executives are concerned, the brand should return to profit as soon as this year. Opel posted a $1.76 billion Europe last year, but the company is expected to post profit in 2011, as the brand intends to launch in new markets and expand its product portfolio.

"Our internal target is to be profitable this year before restructuring charges," said Nick Reilly, president of GM Europe. "That lays the foundation for next year to turn a decent, good profit again, which has been some time for Opel to do."

In the meantime, the German manufacturer continues its job cutting programme, planning to lay off up to 8,000 employees, as part of the company's campaign to save some money. Reilly says the workforce reduction continues this year but the overall figures will be lowered as the company intends to hire 500 engineers and product development staff this year.

In addition, Opel will also work on its exports, intending to sell cars in Australia, China, Argentina and the Middle East. Between 40,000 and 50,000 vehicles are expected to be exported this year, Reilly said in a statement, before eventually reaching 100,000 units in three or four years. But moving production of Opel models in some other markets is still out of discussion.

"Then we see where we go from there," he said. "If we're successful, we may expand to other countries. If we're really successful, we may even think of local manufacturing, but we're not that far yet."