General Motors and its Opel division in Europe are evaluating production of Chevrolet-brand cars in the region in an effort to improve profitability, the German unit has said.
Opel will invest €11 billion in new models in 2014, with an “exchange” of new-vehicle development projects planned with French partner PSA Peugeot Citroën, the GM division’s head, Karl-Friedrich Stracke, said.
“We are in discussions with our colleagues in Detroit and Shanghai to see whether we can build Chevrolets in Europe,” Mr Stracke said. “This would improve capacity use.”
Mr Stracke presented the measures to Opel workers yesterday as part of a 10-point plan intended to improve profitability, market share and revenue by 2016.
GM posted a first-quarter adjusted operating loss of $256 million (€199 million) in Europe, compared with a $5 million profit a year earlier.
The Chevrolet brand is currently manufactured in South Korea for the European market. – (Bloomberg)