Opel’s Turnaround Plan Includes EVs, More Markets And A Return To Profit By 2020

Opel outlined its future strategy which will help it return to profitability and secure a sustainable future for the German brand.

According to its new strategic plan -which goes by the name PACE!- Opel/Vauxhall will move to PSA platforms four years faster than originally planned. The company wants to electrify every model line by 2024, promising to offer battery-electric and plug-in hybrid versions alongside the traditional internal combustion engine.

By 2020, Opel will have launched nine new models, including four electrified ones. Among the new models will be a plug-in hybrid version of the Grandland X SUV, a fully-electric version of the next-gen Corsa supermini and a new SUV.

Other measures include making Opel more competitive by reducing costs per car by 700 euros ($815) and creating a lower financial break-even point of 800,000 vehicles per year to secure a profitable business model.

Opel’s new plan was designed to avoid forced lay-offs as it currently negotiates voluntary departures, early retirements and shorter hours with its workers while relying partly on exports for its underused factories. The company plans to enter 20 new markets by 2022, with China and Brazil being under consideration.

“This plan is paramount for the company, to protect our employees against headwinds and turn Opel/Vauxhall into a sustainable, profitable, electrified, and global company,” said Opel CEO Michael Lohscheller. “Our future will be secured and we will contribute with German excellence to the Groupe PSA development. The implementation has already started with all teams eager to achieve the objectives.”

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  • Bash

    I like to see opel making profit. Opel is capable of making nice cars. That just need a good management and steady plan. GM ruined it long time.

    • TheYes

      GM also ruined Saab which could be at the same level of Volvo nowadays

      • Bash

        Exactly! GM, Great Morons, Goofy Management.

        • fabri99

          Grand Mess.

      • Marty

        To be fair, Saab never really managed to live up to the brand promises that the old 900 created, regardless of ownership. In the old days Saab lived off the money that Scania made from creating world class trucks, until Scania had enough.

        But of course GM didn’t make anything better. They are efficient brand killers 🙂

    • LWOAP

      Lancia, Maserati, and Alfa needs it too. I know this isn’t about FCA, but those brands are slowly dying. Well, except Lancia; they’re pretty much dead at this point.

      • fabri99

        Well, Alfa is coming back but I fully agree on the other two. Shame to see Lancia in these conditions…

        • LWOAP

          Ok, you’re right, but they really should keep it going to stay relevant.

          • fabri99

            Well, that’s for sure. I don’t trust Marchionne administration a bit, but at least they are giving it a try. Maserati on the other hand is just making cars for the sake of it: interior quality sucks and the germans are still far to reach.

      • Bash

        Well said!

    • gary4205

      GM owned Opel since 1923. Was good at engineering, but a constant drain on profits.

      Hope they can turn it around….but it won’t be easy.

      GM even sold Opels through Buick dealers in America, didn’t help much.

  • LWOAP

    I hope it works out.

  • Matthew Raworth

    It will be interesting to see which models they axe, I can only imagine the Agila & Zafira getting chopped