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.
GM Board of Directors makes clear commitment to Opel
GM CEO Dan Akerson: "Opel has GM's full support"
Confirmation of "DRIVE!2022" plan for future
Piece of Berlin Wall as symbol of solidarity
Rüsselsheim. The General Motors (GM) Board of Directors used its meeting in Rüsselsheim to underscore its commitment to Opel and Germany. This commitment was also manifested in the approval of a comprehensive investment program: GM will invest 4 billion euros in Germany and Europe through 2016. "As a global automotive company GM needs a strong presence in Europe – in terms of design and development as well as manufacturing and sales," said Dan Akerson, Chairman and CEO of GM, at a press briefing at Adam Opel Haus. "Opel is a key to our success and enjoys its parent company's full support."
The Board of Directors chose Germany for a regularly scheduled meeting to get first-hand information on the progress on its 10-year strategy DRIVE!2022 and the challenging European automotive environment. The Board also used this opportunity to meet with economists, unionists and politicians.
In addition to Akerson, Opel CEO Dr. Karl-Thomas Neumann, Supervisory Board Chairman Steve Girsky and Works Council Chairman Dr. Wolfgang Schäfer-Klug also spoke at today's press conference in Rüsselsheim. The Board of Directors welcomed the guests of honor Minister President of Hesse Volker Bouffier, the American Ambassador Phil Murphy as well as Rüsselsheim Mayor Patrick Burghardt, who brought the city's Guest Book for the visitors to sign.
Dr. Karl-Thomas Neumann, CEO of Adam Opel AG, emphasized that it is a great honor for Opel to be able to host the GM Board: "This Board has once again made very clear that our 10-year plan DRIVE!2022, that foresees our return to profitability by the middle of the decade, has our parent company's complete support." A large part of the investments are going into the Opel model offensive. Through 2016, Opel will introduce 23 new models and 13 new powertrains.
Opel Supervisory Board Chairman Steve Girsky said, "The Board of Directors is here to underline its solidarity and support. Opel has been part of GM since 1929 and is today more than ever a decisive element for the entire company's innovative power. This partnership is stronger than it has ever been."
Following the press briefing Dan Akerson revealed a piece of the Berlin Wall that belongs to Opel and will be placed in front of the Adam Opel Haus on Friedrich-Lutzmann-Ring. "This piece of the wall is a symbol of our corporate culture," said CEO Dr. Karl-Thomas Neumann. "The symbol should remind everyone that we overcome any walls in our heads and those between different cultures and that we are now starting a new chapter in the history of Opel."