CEO says GM won’t “cut and run”
General Motors CEO Dan Akerson has confirmed his commitment to the success of Opel/Vauxhall, speaking to 5000 employees at the brand’s headquarters in Russelsheim, Germany.
Ackerson confirmed that GM was neither going to sell the loss-making company nor simply declare it bankrupt.
“Our protracted losses have prompted some analysts to argue that we should sell Opel or simply close up shop and leave car sales in the region to others," he said. "I’m not about to do that.”
He also stated that the 23 new models and replacement models that Opel is planning to bring to market by 2016 were proof that GM is committed to the future of its European arm.
Ackerson has been under pressure from shareholders to wind down operations at Opel/Vauxhall, after a forecasted $1.8 billion full-year operating loss in Europe.
The GM boss instead intends to expand the company, citing an intended partnership with PSA Peugeot Citroën, despite reports that the tie-up had been shelved in the wake of a French government bailout of the group’s finance division.
Daljinder Nagra