!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! General Motors Delivered 2.4 Million Vehicles Globally in Q1

General Motors Co. dealers delivered 2,416,028 vehicles around the world in the first quarter of 2014, up 2 percent compared with a year ago.

General Motors dealers delivered 2,416,028 vehicles around the world in the first quarter of 2014, up 2 percent compared with a year ago.

Among GM’s top five global markets by volume, China posted the largest year-over-year sales increase, with deliveries up 13 percent to a record 919,114 units. Sales in the United Kingdom and Germany were also up, and Opel/Vauxhall grew its share in 10 European markets.

“We are very encouraged by our results in China, where we outperformed the industry, and in Europe, where Opel’s sales and the economic outlook are improving at the same time,” said GM President Dan Ammann. “We continue to be optimistic about the United States because our award-winning new products are performing well and we have more on the way. South America continues to be challenging for Chevrolet, where we face currency and other challenges, especially in Venezuela.”

First Quarter Highlights (vs. 2013)

• In Europe, GM’s improving market position is linked to the Opel Mokka and the new Opel Insignia flagship sedan. Cumulative Mokka orders have surpassed 215,000 units since it was launched in fall 2012, while Insignia has topped 85,000 units since it was launched in fall 2013.
• GM sales in China set a record in the first quarter. In addition, 2014 deliveries surpassed 1 million units in early April. This is the earliest sales have reached the seven-figure range.
• Buick, which celebrated the best year in the brand’s 110-year history in 2013, posted a 14 percent global sales increase.
• Cadillac’s global sales were up 9 percent and sales in China more than doubled to 15,357 units.

GM’s global market share was 11.1 percent, which is down two-tenths of a point from a year ago. However, Opel/Vauxhall gained market share in 10 European markets, including Germany. GM also gained market share in China due to the ongoing success of Buick and Wuling, as well as the growth of Cadillac.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets.  GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. 

!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).