Opel to discuss plans to combat recession
Opel’s board will meet today to discuss a business plan designed to insulate it against the deep downturn in Europe’s car market and root out cost savings together with General Motors’ new alliance partner PSA Peugeot Citroën.
With Europe the biggest drag on GM’s profitability and share price, the Detroit car maker is seeking synergies with Peugeot and studying ways to build cars more efficiently in a market that analysts now say may not fully recover in this decade.
GM earlier this month published the broad outlines of its strategy to fix Opel, including a plan to close its plant in Bochum, Germany, at the end of 2016. Opel’s management has offered a ban on compulsory redundancies until 2016. – Copyright The Financial Times Limited 2012