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Opel 'vital' to General Motors

September 15, 2015

General Motors (GM) chief executive Mary Barry has underlined the US car group's commitment to the recovery of its European branch Opel as she showed off a new model of the brand at the Frankfurt auto show.

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General Motors Mary Barra in Rüsselsheim
Image: picture-alliance/AP Photo

GM CEO Mary Barra announced Tuesday that the US car group's European subsidiaries Opel in Germany and Vauxhall in Britain would bring 29 new models onto the market by 2020.

Speaking during a presentation at the International Auto Show, IAA, in Frankfurt, Germany, Barra said GM was planning to build an electric car and a new sports utility vehicle (SUV) at Opel/Vauxhall.

"This completely new SUV will come off the line in Rüsselsheim at the end of the decade and give the marque an additional technology boost," Barra added.

The two models will add to 27 new models Opel/Vauxhall plans to build between 2014 and 2018 as part of a strategy to revive the brand in Europe and move into second place on the continent by 2022.

Last year Ford was behind Volkswagen, with Opel/Vauxhall in third place.

Renewed commitment to Opel

Barra's announcement came during the presentation of a new Opel Astra model - a mass market vehicle Opel manufactures alongside the Corsa small car.

"With this vehicle we are writing a further important chapter in our comeback story," the head of the Opel Group, Karl-Thomas Neumann, said.

And GM CEO Barra added the new Astra would play "a significant role" in the long term success of Opel. "Opel is vital to GM," she said.

The new Astra will be key in growing sales in a fiercely competitive market for mass-market vehicles. It goes up against a new Renault Megane, also being shown in Frankfurt, and the Ford Focus and Volkswagen Golf. Opel has gained market share and increased sales, and expects to return to profit by 2016.

uhe/tko (Reuters, AFP, dpa)