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Europe,
Plants/Manufacturing,
GM,
Earnings/Financials,
Opel
Never fear,
Opel fans.
General Motors isn't sending the brand out to pasture. The European automaker is set to receive a massive $5.2 billion investment from
GM between now and 2016 as part of a larger effort to solidify Opel as GM's design and manufacturing backbone in Europe. Opel plans to return to profitability by the middle of this decade under its DRIVE!2022 business plan, and the cash infusion from GM should help make that projection a reality. Even so, it may be some time before Opel is able to turn its fortunes around.
The automaker lost $1.8 billion last year, up from $700 million the year prior. Opel faces numerous challenges compounded by the fact that the European Union continues to be mired in economic slump. Even so, the new investment helps put rumors that GM had plans to sell Opel to bed. You can read the
full press release on the funds below.
Continue reading Opel getting 5.2 billion dollar investment from GM
Opel getting 5.2 billion dollar investment from GM originally appeared on
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Official: Opel getting 5.2 billion dollar investment from GM
