General Motors Company (NYSE:GM) CEO Mary Barra announced today that the auto giant is committed to the Opel unit. Barra promised to invest in the European flagship factory in Rüsselsheim (near Frankfurt) and will be adding a third model line.
?It is no accident that I chose to come to Germany,? stated Barra. ?I thought it was very important to reinforce in person G.M.’s commitment to Opel.?
For more than 10 years, the Opel unit has been losing money and market share. The company also went through a series of executives going in and out like a revolving door. Opel was almost sold in 2009.
Opel’s losses have been narrowing though. In Q3 2013, GM reported a $200 million loss, which is down from $500 million a year earlier. Barra said that Opel gained marketshare in new models like the Adam, which competes against the Fiat 500 and BMW Mini.
Barra spent several years as a member of the supervisory board of Opel. Today, GM said that the company president Dan Ammann will be the chairman of the Opel board. Ammann will be succeeding Steve Girsky.
[Source: NY Times]