Michael Lohscheller Appointed New CEO of Opel

Michael Lohscheller, Chief Executive Officer, Speaker of the Management Board of Adam Opel GmbH

 Opel CEO Dr. Karl-Thomas Neumann has stepped down as the Speaker of the Management Board and CEO of Adam Opel GmbH today. He remains a member of the Management Board until the closing of the sale of Opel/Vauxhall to Groupe PSA. Michael Lohscheller, Opel CFO since September 2012, has been unanimously appointed as his successor with immediate effect by the Supervisory Board. This will ensure continuity for the business and its stakeholders as well as a seamless managerial transition with the priority task to build the new strategic plan for Opel. 

Dr. Karl-Thomas Neumann (left) and the new Opel CEO, Michael Lohscheller.

According to Dr. Neumann, “it was a difficult personal decision to not continue with the Opel/Vauxhall team when it transitions to Groupe PSA. I am proud of the team for all we have accomplished so far and have no doubt that the move to PSA will make Opel/Vauxhall an even stronger and more successful company in the future. I am committed to completing this transaction and will then take some time to decide what is next for me.”

“We have made tremendous progress in the turnaround of Opel/Vauxhall under Karl-Thomas’ leadership,” said Dan Ammann, Opel Supervisory Board Chairman and President, General Motors. “We thank him for his significant contributions to Opel/Vauxhall and GM over the past four years.”

Dr. Wolfgang Schäfer-Klug, Vice Chairman of the Supervisory Board of Adam Opel GmbH and Head of the General Works Council: “The worker representatives within the Supervisory Board respect Dr. Neumann’s decision. He has managed to regain recognition with Opel, an improved brand image and a strengthened self-awareness, coupled with competitive, outstanding models. The decision to appoint the current CFO and member of the management board Michael Lohscheller as the new CEO is explicitly supported by us.”

Michael Lohscheller said: “I would like to thank the Supervisory Board for the trust. We will stay on the current path and continue to gain strength as part of the Groupe PSA. After the expected closing of the transaction, a new European champion will emerge. I am looking forward to the new task and to working together with the management team to implement a successful future plan for the benefit of all 38,000 Opel/Vauxhall employees and its stakeholders.”

Groupe PSA Statement further to the appointment of Mr Lohscheller as CEO of Opel/Vauxhall

"We fully support the decision to appoint Mr. Lohscheller who will be surrounded by Opel's best talents to bring Opel / Vauxhall to new horizons for the benefit of its employees, customers and partners. My personal interactions with Michael have been extremely positive, where he has shown a great deal of insight of Opel and Vauxhall, as well as a solid understanding of the international marketplace. I am enthusiastic about the idea of contributing to the rebirth of Opel as a sustainable German-based company within Groupe PSA." said Carlos Tavares, Chairman of the Managing Board of Groupe PSA.

!NEW! Opel Engine Offensive: Topping-out Ceremony for new Powertrain Center

• Seven-storey testing and engineering building for the powertrains of the future
• 210 million euro investment in Rüsselsheim running according to plan
• GM’s leading powertrain developer Dan Nicholson emphasizes global responsibility

Topping-out ceremony of the new powertrain center in Rüsselsheim: Foreman Sascha Göbel, Opel Group CEO Dr. Karl-Thomas Neumann, GM Vice President Global Powertrain Dan Nicholson, Head of the Works Council Dr. Wolfgang Schäfer-Klug, Vice President GM Powertrain Engineering Europe Christian Müller and the Lord Mayor of Rüsselsheim Patrick Burghardt (from left to right)

Opel is investing in the powertrains of the future. 210 million euro have been allocated to the new, ultra-modern powertrain center currently being built in Rüsselsheim where efficient drive systems will be developed and tested. Construction is going exactly to plan: The topping-out ceremony took place today, the center will be inaugurated in 2017.

Opel Group CEO Dr. Karl-Thomas Neumann and Head of Works Council Dr. Wolfgang Schäfer-Klug were joined at the topping out ceremony by GM’s highest powertrain developer Dan Nicholson, Vice President Global Powertrain. Rüsselsheims lord mayor Patrick Burghardt was also among the guests when Sascha Göbel, the representative of the responsible construction company read out the traditional topping-out address.

The topping-out wreath was pulled to the top of the new Opel powertrain center in Rüsselsheim. Foreman Sascha Göbel (right) read out the topping-out address assisted by his colleague Florian Kunz.

Dr. Karl-Thomas Neumann emphasized the importance of this investment for the future of the brand. “We take our responsibility for the climate and environment seriously and are on track to meeting the CO2 target set for 2020. The new powertrain center will make our work even more efficient. It will not only strengthen Rüsselsheim but also the entire GM development network and it ensures that Opel will remain at the forefront of clean propulsion.”

“The powertrain center is an extremely important strategic company investment. GM decided on building this center in Rüsselsheim for a very good reason – this is where responsibility for small and medium-sized gasoline engines lies. It recognizes the performance and the know-how of our highly qualified Opel engineers,” added Dan Nicholson.

Head of Work Council Dr. Wolfgang Schäfer-Klug added: “The negotiations on the Opel collective agreement were the basis for the decision to invest in the new powertrain center here in Rüsselsheim. It secures and extends employment in the development center. I am therefore particularly happy to be at the topping-out ceremony of the building today.”

“The new powertrain center will further strengthen the outstanding importance of the International Technical Development Center for the Rüsselsheim site and Opel’s considerable research and development competence. But also beyond this, Rüsselsheim is synonymous for innovative technologies and forward-looking concepts,” said Patrick Burghardt, lord mayor of Rüsselsheim.

Apart from the workshop and office building, the new building complex will have three wings with test benches and a technical center. The total building surface area is around 36,000 square meters. Amongst others, the new center will also house 43 newest-generation performance test benches.

The groundbreaking ceremony took place last summer and since then the construction has grown in 180,000 accident-free working hours.

The new complex is part of the investments of 230 million euro investments in new testing and engineering facilities at the International Technical Development Center and at the test center in Rodgau-Dudenhofen. The lion’s share of that, 210 million euro, is being invested in the Rüsselsheim site. The complex will cover an area of around 13,000 square meters south of the railroad tracks and west of Portal 45 in Rüsselsheim, parallel to the Rugbyring. This is the largest building investment in Rüsselsheim since the opening of the new production plant in 2002.

The site is embedded in the global engineering network of the GM Powertrain Organization. Due to internationally synchronized test methods and software, findings can be optimally analyzed and implemented. 

!NEW! High-Tech Equipment for the Opel Design Center

• New center for high-speed milling opened in Rüsselsheim
• Innovative vehicle concepts can be realized much quicker

Official opening: GM Director Global Design Operations Mark E Leavy, Vice President Design Mark Adams, Opel Group CEO Dr. Karl-Thomas Neumann, Head of the Opel Works Council Dr. Wolfgang-Schäfer Klug and Design Operations Director Richard Bolz (from left to right) opened the new high-speed Milling Center in Rüsselsheim.

Opel is laying the foundations for the automotive design of the future with further investments in Rüsselsheim. On Thursday, Opel Group CEO Dr. Karl-Thomas Neumann, Vice President Design Mark Adams, Design Operations Director Richard Bolz and Wolfgang Schäfer-Klug, Head of the Opel Works Council, opened a new high-speed milling center, where the design models and concept cars of the future will be produced. Opel has invested a total of euro five million in the ultra-modern milling machines and the modernization of the buildings.

Opening gift: Vice President Design Mark Adams presents Opel Group CEO Dr. Karl-Thomas Neumann with a model of the Monza Concept made at the Milling Center.

“Outstanding design is part of Opel’s brand essence. We are investing in latest technologies to keep it that way. It will give us the opportunity to realize our creative ideas even quicker, more precise and more focused,” said Dr. Neumann. “I am delighted that the Milling Center is now open. The new machines will guarantee outstanding quality when milling our design model and secure employment at our Rüsselsheim site. The investment is further proof of Opel’s comeback to success,” added Wolfgang Schäfer-Klug, Head of the Opel Works Council.

Fast and precise: The computerized milling machines can create the most complex shapes in prime quality and of the highest precision.

High-speed milling is a technological innovation that reduces the development time of vehicles considerably. Design models can be produced in various scales in a relatively short space of time, allowing the proportions and design elements to have their full impact. The computerized, five-axis milling machine operate at up to 60 meters per minute and can create the most complex shapes in prime quality and of the highest precision. The machines can be operated with various materials such as aluminum, Plexiglas and plastics with different degrees of hardness.

The visitors of the opening ceremony received an insight into the numerous possibilities that the new high-tech centers opens: Opel Monza concept car, presented at the 2013 Frankfurt Motor Show, was impressively set in scene in the middle of the new high-speed milling machine.

High-tech milling machine: The Opel Designers in Rüsselsheim can look to the latest technology – here with the Opel Monza Concept.

The Opel Design Center in Rüsselsheim can look back on a unique history spanning more than fifty years. As the first of its kind in the European automotive industry, it attracted car designers from all over the world.

The new Milling Center is a further step in Opel’s large-scale product offensive with 27 new models and 17 new engines being brought to market between 2014 and 2018. The next highlight will be the new Astra that will celebrate its world premiere at the Frankfurt Motor Show in September. 

!NEW! Opel to Operate Distribution Centers in Bochum and Rüsselsheim on Their Own Again

• Car manufacturer will not renew joint venture contract with partner Neovia
• Reintegration into Opel will become effective on February 1, 2016
  
• Distribution center expansion plans for Bochum remain unchanged

The Opel logistics distribution centers, which are currently being conducted in a joint venture with Neovia Logistics Supply Chain Services GmbH, are planned to be reintegrated into Opel on February 1, 2016.

"We have made a decision to consider replacement parts logistics a core competence of our company and to therefore operate the European warehouses in Bochum and Rüsselsheim on our own in the future. The German distribution centers are extremely important and play a crucial role in our plans," explained Peter Christian Küspert, Vice President Sales & Aftersales and Member of the Board, Opel Group. "This direction is purely based on strategic corporate reasons. We have been satisfied with the cooperation. Neovia has proven to be a competent logistics partner," said Peter Christian Kuespert.

Wolfgang Schäfer-Klug, chairman of the German Works Council, declared: „I am very happy, that the colleagues will return to Opel. They will benefit from existing job guarantees for Opel employees.” Regarding Opel`s strategic realignment he said: “The next job should be integrating the warehouses in Bochum and Rüsselsheim into the Opel growth strategy.”

This news is especially important for the Bochum area, where the distribution center plays a key role in Opel’s future set-up. As already announced, the Bochum warehouse will be expanded with an investment of 60 million euro and the number of jobs will increase by 265 to around 700 according to the social tariff agreement. The investment will mainly be used for a new building on the site of what is locally known as plant 2. The Bochum logistics center supplies replacement parts to all markets where Opel cars are sold.

The social tariff agreement will obviously be valid for the 265 employees moving from the Bochum vehicle production to Neovia. For the Rüsselsheim warehouse the same employment guarantees as for all other Opel workers will apply.

The joint venture also operates warehouses for Opel in Rome and Budapest. The decision with regards to the continued outsourcing of the Rome and Budapest warehouses will be evaluated during 2015.

The joint venture, in which Opel has a 20 percent share, goes back to 2006. Based on long-term logistics service agreements the smaller warehouses in Rome, Rüsselsheim and Budapest have a role as so-called Parts Distribution Centers (PDC) and are responsible for supplying the authorized Opel dealers in their respective regions. Bochum as a European Sourcebook Warehouse (ESW) has a central function for the whole of Europe and supplies the Parts Distribution Centers.

!NEW! Opel/Vauxhall to Produce Second Flagship in Rüsselsheim and to Invest in New Engine and Transmission Production

• GM Chief Executive Officer Mary Barra announces production of New SUV in  Rüsselsheim
• Considerable investments in engine and transmission production in the Rüsselsheim, Kaiserslautern and Tychy plants
• Third shift at the Eisenach plant will be added next year
• Clear commitment to Opel/Vauxhall, Germany and Europe

Opel Group CEO Dr. Karl-Thomas Neumann and GM CEO Mary Barra in front of the new Corsa E.  Barra announces production of a new SUV in Rüsselsheim.

During her second visit to Germany this year, Mary Barra, Chief Executive Officer of General Motors, announced additional considerable investments. Barra confirmed that new model will be produced at Opel’s traditional headquarters in Rüsselsheim by the end of the decade. “This SUV will be the brand’s second flagship alongside the Insignia,” Barra said. As announced in March, 245 million euro will be invested in Opel’s Rüsselsheim plant to meet future requirements. Furthermore, Barra declared additional investments of more than half billion euro in the engine and transmission plants in Rüsselsheim, Kaiserslautern and Tychy (Poland), thus providing the impetus for Opel to move to the next stage of its powertrain offensive with fuel efficient engines and transmissions.

Opel Insignia - Current flagship model

“Opel/Vauxhall is of high strategic importance for GM. The product offensive with 27 new models and 17 new engines has enjoyed a very successful start. These additional investments will help the brand shine again and further strengthen our position in Europe. They are a clear sign of GM’s commitment to Opel, to Germany and to Europe,” said Barra.

Opel Group CEO Dr. Karl-Thomas Neumann and GM CEO Mary Barra 

Opel Group CEO Dr. Karl-Thomas Neumann was delighted by the clear message: “General Motors and Opel/Vauxhall are closer than ever before.” He continued to explain that Opel/Vauxhall  has General Motor’s full support. “The additional investments are further proof of the excellent cooperation.”

Both, Mary Barra and Dr. Neumann, pointed out that all necessary decisions were taken after a constructive dialog with employee representatives. They recognized the cooperation with the European employee representatives, the Industrial Metal Union (IG Metall) and Opel’s general works council, chaired by Wolfgang Schäfer-Klug.

Wolfgang Schäfer-Klug: "The package of measures is based on existing collective labor agreement commitments. The agreement is an important prerequisite for the continuation of Opel’s ride in the fast lane. It helps to continue our growth course with safe and competitive jobs."

Dr. Neumann also announced that a third shift will be established at the plant in Eisenach as of mid 2015. “This is good news for Eisenach as we are enjoying strong demand for the Opel/Vauxhall ADAM and the new Corsa  E.”

Opel ADAM 

Mary Barra expressed her delight with the new Corsa E, adding that 45,000 orders before the official market launch show that the fifth generation of the small car is well on its way to becoming a bestseller.

!NEW! Opel becomes more Efficient and Solid

• Newly-established Opel Group reflects widened scope of European activities
• From now on, Opel’s leadership team steers General Motor’s European business including Russia from the Opel Group 
• Opel Group assumes economic responsibility for all GM brands in Europe
• Adam Opel AG enjoys more solid financial basis
• No effects on quarterly reporting in Europe
• Employees’ rights of co-determination contractually guaranteed

Opel improves its organizational structure: effective 1 July 2014, the newly-established Opel Group assumes full responsibility for General Motor’s business in Europe. Through this new entity, the company aggregates the responsibilities for Opel/Vauxhall as well as all other operations of GM in Europe – including Russia. Led by Dr. Karl-Thomas Neumann, the management board of the Opel Group, which is almost identical to the so-far existing management board of the Adam Opel AG, will steer GM’s European business. The new entity, similar to the Adam Opel AG, will be based in Rüsselsheim.

With this organizational change, the Opel Group will also take over economic responsibility for all GM brands in Europe. Consequently, the Adam Opel AG will be able to strengthen its financial basis. The operative business of the Adam Opel AG remains unaffected by this reorganization.

Dr. Karl-Thomas Neumann, CEO of the management board of Opel Group GmbH: “Today, we are more than just Opel/Vauxhall. With the Opel Group, we align our organizational and legal entity structure in Europe with the business operations. We streamline our decision making processes and increase our efficiency. In brief: this reorganization is an important step in implementing our business plan DRIVE! 2022 and another sign of confidence of our parent company GM.” By 2022, the company aims to gain market share of 8 percent in Europe, increase the profit margin to 5 percent and further improve product quality as well as customer and employee satisfaction.

The employees’ rights of co-determination are contractually guaranteed in the new organizational structure. Dr. Wolfgang Schäfer-Klug, Chairman of the General Works Council: “We ensured that the right of co-determination is safeguarded to the same extent despite the organizational changes.” In reference to the foundation of the Opel Group with its about 100 employees, Dr. Schäfer-Klug said: “We are happy that Opel’s position has been further strengthened. From Opel’s perspective, the reorganization of the European business offers more opportunities for growth and employment.” 

The new Opel Group is a testimony of how important Opel has become for General Motors. The Opel leadership has taken over numerous GM responsibilities in Europe over the past two years. Among these are full responsibility for Russia’s growing market and the planned manufacture of selected cars for Buick in the US and Holden in Australia and New Zealand.

!NEW! Opel Builds Center for Engines of the Future

• Automaker investing 210 million euros in Rüsselsheim
• State-of-the-art facilities to develop and test clean engines
• 43 modern performance test benches available by 2017
• Hesse’s Minister for Economic Affairs Tarek Al-Wazir at groundbreaking ceremony

Opel starts major construction project at its Rüsselsheim headquarters: The company continues its investment offensive, allocating 210 million euros to the construction of a complex of buildings – the tallest seven stories high – on the south-west sector of the International Technical Development Center (ITDC) premises. On a total building surface area of around 36,000 square meters, from 2017 engineers and technicians will develop the powertrains of the future. The new center will also house 43 newest-generation performance test benches.

The groundbreaking ceremony for the major project took place on Monday. Manning the shovels were CEO Dr. Karl-Thomas Neumann, Head of Opel Works Council Dr. Wolfgang Schäfer-Klug, Vice President of the GM Powertrain Division Steven Kiefer, Opel Board Member for Engineering Michael Ableson, and two high-ranking political guests: Hesse’s Minister for Economic Affairs Tarek Al-Wazir and Rüsselsheim’s mayor Patrick Burghardt.

“With this investment we very clearly show: Opel is back. Opel is on the attack,” said Karl-Thomas Neumann. “Our model offensive is in full swing – and engines are a very important part of this offensive.”  

The construction project is part of the investment announced last year that earmarks 230 million euros for new testing and engineering facilities at the ITDC and at the Test Center Rodgau-Dudenhofen. The lion’s share of that, 210 million euros, is being invested in the Rüsselsheim site. The complex will cover an area of around 13,000 square meters south of the railroad tracks and west of Portal 45 in Rüsselsheim, parallel to the Rugbyring. This is the largest building investment in Rüsselsheim since the opening of the new production plant in 2002.

The site is embedded in the engineering network of the GM Powertrain Organization. Due to internationally synchronized test methods and software, findings can be optimally analyzed and implemented. Steven Kiefer, Head of GM Powertrain, said, “For us, Rüsselsheim is the center for the development of small and mid-size gasoline engines. We rely on internationally-networked German engineering and with the construction of this new site, we create optimum working conditions for our experts.” Kiefer continued, “Important new engine generations will be created in Rüsselsheim, including their applications for all markets where GM is present. The new facilities meet globally uniform technical standards and increase the flexibility, development speed and efficiency of the entire group.”

A new building as symbol for the engine offensive

The construction project in Rüsselsheim is a visible sign of the Opel engine offensive. To 2018, Opel will introduce 27 new models and 17 new, economical engines to the market. With the refreshed product portfolio, market share in Europe is to be substantially increased to 8 percent by 2022. Board Member for Engineering Michael Ableson, said, “We are looking at the whole diverse variety of future propulsion technologies that are more economical and environmentally friendly. The combustion engine maintains an important role, as it still has a lot of potential. As one of the pioneers of clean propulsion, it is Opel’s goal to not only undercut the future stringent CO2 barriers, but to also ensure driving fun and best performance at the same time.”

Head of Works Council Schäfer-Klug said: “As employee representatives, from the very beginning we advocated investment in, preservation and expansion of engineering jobs. So I am delighted that we are laying this foundation stone today. It is more proof of growth and job security at Opel.”

Hesse’s Minister of Economic Affairs Tarek Al-Wazir praised Opel‘s commitment to the region: “I am sure that fuel consumption and CO2 emissions of engines will always be important to customers. Therefore the new development center for efficient engines is a smart, climate-friendly investment. I am pleased that Opel invests a three-figure million amount in these future technologies here in the Rhine-Main area”.

And Rüsselheim’s mayor Patrick Burghardt also sees the engine building complex as a sign of a new start for the city: “A new site of this size has not been built here in a long time. Rüsselsheim and Opel – this is not only a long, rich tradition, it is also a clear prospect for the future.” 

!NEW! Opel Invests 245 Million Euros in Ruesselsheim

• Investment for additional vehicle for main German plant at end of decade
• Additional production of a Buick model for North America 
• Change of export strategy for Chinese market 

On top of four Opel Insignia variants and the Opel Zafira Tourer MPV, which will be produced as of January 2015, the Ruesselsheim plant will get two additional vehicles later in the decade. This was decided by the Opel Supervisory Board at its meeting this week.

A significant investment of 245 million euros will be made to build an additional model. Due to competitive reasons, details about this car will not be announced until the end of the year. The Supervisory Board also gave the green light for the future production of an additional variant of the Opel Insignia. The Ruesselsheim plant has been chosen for the assembly of a future model which will be sold in the US under the Buick brand name. Start of production will also be in the second half of the decade.

"With the investment in a new, additional model for Ruesselsheim, we will take another important step in our multi-billion dollar model offensive with which we will pave the way for Opel’s profitable growth,” said GM President and Opel Supervisory Board Chairman Dan Ammann. "And the Buick production in Ruesselsheim will further improve our capacity utilization," added Opel CEO Dr. Karl-Thomas Neumann.

”The decisions of the Supervisory Board for the production of a Buick and for the investment in an additional model for the Rüsselsheim plant are based on the recently concluded collective agreement. They are part of our extended growth strategy and are further evidence of GM’s confidence in Opel," said Dr. Wolfgang Schäfer-Klug, Head of the Opel Works Council and Deputy Chairman of the Supervisory Board.

In addition, Opel has decided to change the export strategy for the Chinese market. As of January 2015, sales of the Opel brand in China will cease. "This is a long overdue decision,” said Dr. Karl-Thomas Neumann. “It would have cost hundreds of millions of euros to raise awareness of the Opel brand and to expand the distribution network. Buick, however, is one of the market leaders in China and we plan to intensify our future collaboration, with several projects currently under examination."

Last year, 22 Opel dealers in China sold a total of 4,365 vehicles. In comparison, Buick – with 650 dealers – sold about 810,000 vehicles in China, including several that were co-developed with Opel.

Globally, Buick set an all-time global sales record last year, delivering 1.032 million vehicles worldwide. Buick was GM’s third largest passenger car brand after Chevrolet (4.984 million units) and Opel/Vauxhall (1.064 million units).

!NEW! Dan Ammann to chair Adam Opel AG Supervisory Board

GM reinforces commitment to Opel with the appointment of further top executives

Dan Ammann is the new Chairman of the Opel Supervisory Board.

The Supervisory Board of Adam Opel AG has elected GM President Dan Ammann (41) to succeed Steve Girsky as its new chairman. Ammann is a member of the Supervisory Board since November 2011. This January, he had been officially nominated by GM for the senior position.

In addition, GM has reinforced its commitment to Opel with the appointments of further top executives to the Supervisory Board: Mark Reuss, Executive Vice President of Global Product Development, Purchasing and Supply Chain; Julia Steyn, Vice President of Global Mergers and Acquisitions; Chuck Stevens, Executive Vice President and CFO and Jim DeLuca, Executive Vice President Global Manufacturing.

In addition to Steve Girsky, Mary Barra has left the Supervisory Board in order to focus on her new leadership role as GM Chief Executive Officer. John Stapleton, who is now CFO of GM North America, has also left the Supervisory Board, while Tim Lee, Executive Vice President, Global Manufacturing, and Chairman, GM China, resigned because he is retiring from the company.

Mary Barra had already praised Steve Girsky in January for his dedication and exceptional performance: “Steve has led the turnaround of GM Europe and brought the region back to the path of profitability. Dan Ammann will maintain this course with the clear aim to reach breakeven by the middle of the decade.”

Dr. Wolfgang Schäfer-Klug, head of the Opel works council and Deputy Chairman of the Supervisory Board: “In his role as GME President and head of the Supervisory Board Steve Girsky has brought GM and Opel together again. In dialogue with the employee representatives he made decisions of high importance for the future of Opel. Dan Ammann has been part of this policy as a Supervisory Board member and I am sure that he will continue this course.”

!NEW! Opel/Vauxhall to produce Mokka SUV in Spain’s Zaragoza plant in 2014

High global demand for small SUV creates additional capacity opportunities 

Good Decision: Opel CEO Dr Karl-Thomas Neumann announces that the Mokka production is coming to Europe

Production of the Opel/Vauxhall Mokka is coming to Europe. GM’s plant in Zaragoza (Spain) will start producing the successful small SUV in the second half of 2014. GM and Opel/Vauxhall leadership made this joint decision because of the high demand for the vehicle in Europe. At the same time, additional capacity for small SUV’s will be created at the plant in Bupyeong (Korea) that has been the unique source of production so far.

Meeting in Zaragoza: Opel CEO Dr Karl-Thomas Neumann shaking hands with Spanish Prime Minister Mariano Rajoy

Opel CEO Dr. Karl-Thomas Neumann said: “The decision for Zaragoza follows our company's strategy of building vehicles where we sell them. The enormous demand for the Mokka underlines the attractiveness of our vehicles, adds momentum to our product offensive and secures jobs in Europe. The decision will help address the underutilization of available production capacity in Europe and therefore is good news for the entire organization.”

Chairman of the European Employee Forum (EEF) Dr. Wolfgang Schäfer-Klug stated: “It is not only great news for Zaragoza but for all plants in view of the improved overall capacity utilization. Opel/Vauxhall management has now fulfilled a long-standing request from the EEF to produce our small SUV in Europe. This is really a win-win situation for everybody in Opel/Vauxhall.”

In the initial phase, US$ 80 million will be invested in Zaragoza for production. The decision to produce the Mokka in Europe is helping to safeguard 5,800 jobs in Opel’s Spanish plant, which is currently producing the Corsa and Meriva.

Since the launch of the Opel/Vauxhall Mokka in the summer of 2012, the vehicle has been a success. Not only is the stylish SUV popular with experts, but customers as well. The Mokka is among the three best-selling SUVs in several European markets.

While the initial European production will be based on CKD-kits (CKD = Completely Knocked Down), with parts coming from Korea, localization will gradually increase.

“This is another great day for Opel/Vauxhall,” continued Neumann. “After the recent decision of GM to invest 4 billion Euros in its European operations and an additional commitment to invest 230 million Euros in the Development Center in Ruesselsheim, Germany, this is further proof that we are on the right path.”

The biggest winners are Opel/Vauxhall customers and employees in Europe, added Neumann: “With this investment, we will be able to produce more Mokkas and to more quickly serve our customers.”