GM Efforts Failed To Achieve Profitability For Opel
by
Danny Choy
Updated: October 15th, 2013
Share
General Motor‘s European subsidiary, Opel has contributed greatly to GM’s engineering and technology development. Despite this, Opel has had difficulty making profit. GM Vice Chairman and Opel’s supervisory board chairman, Stephen Girsky explained to Financial Times Deutschland, “Unfortunately, our plan for making Opel profitable this year did not work.”
Analysts suggest causes for Opel’s unprofitability include its costly vehicle production in Germany. Germany is one of the most expensive labor markets in the world and Opel’s lack of a premium brand makes attaining the desired profit margin more difficult. If Opel’s lack of performance continues, GM may decide to scrap the brand.
GALLERY: Opel Insignia
[Source: Left Lane News]
More by Danny Choy
Comments
Join the conversation