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Vauxhall boss expects profit by 2012

Vauxhall/Opel chief executive officer Nick Reilly has revealed that it will invest €11 billion over the next five years.

The company is expecting to break-even by 2011 and return to profit in 2012. There will be a 20% capacity reduction across Europe to help it achieve the ambitious target.

The viability plan envisions that 80% of the Opel/Vauxhall products will be at an age of three years or less by 2012.

This includes eight major launches in 2010 with the new Meriva, Corsa, Movano and Astra Sports Tourer – and another four in 2011, with the extended-range electric vehicle Ampera.

Vauxhall will be spending €1 billion on new fuel efficient engine technology as it looks to introduce pure battery-electric vehicles in small car segments, LPG applications and start/stop technology.

The business used an external auditor, Warth and Klein, to judge its business plan for its viability.

GM is looking for a total of €2.7 billion in loans from European governments and is hoping its new business plan will help convince them to help.

Reilly said it had asked for about 60% of this total to come from the German government, on the basis that 60% of the company's employee costs are incurred in Germany.

Reilly said: “We are extremely pleased that we now have independent confirmation that our plan is sound and will place Opel and Vauxhall on the road to sustainable, long-term profitability.

“We now have a road map, we know where we are headed and we are working with all our partners so we can switch into high gear for a successful future.”
 

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