Last week, General Motors announced that it will invest 1.9 billion euros ($2.57 billion USD) towards the restructuring of Opel, more than tripling its previous pledge of 600 million euros. Why? Well, because Opel is to GM of Europe what Chevrolet is to GM of Detroit.
According to a report by the Free Press, Opel is GM’s No.1 brand in the European market with 1.2 million sales last year. That makes Opel the second-biggest brand worldwide for GM by a wide margin. Its sales exceed Buick, Cadillac and GMC’s combined U.S. sales by more than 2 1/2 to last year.
While before Opel and Saturn seemed to be counterparts, Opel now seems to influence Chevrolet vehicles and even some other core GM brands. Opel engineering underpins cars like the Chevrolet Malibu, Cruze, and the Volt. It is also setting the pace for Buick with the new LaCrosse sedan that uses an Opel-engineered platform and the upcoming Regal, which is basically a rebadged version of the award-winning Insignia.
The increased investment from GM means Opel will be able to operate through the year. It previously said it had enough liquidity to run in to the second quarter.
– By: Kap Shah
Source: Free Press