Opel outlines growth plan until 2022
- Market share in Europe to increase to 8 percent by 2022
- EBIT margin of 5 percent targeted
- 27 new models and 17 new engines by 2018
Rüsselsheim. Opel has presented an update of its DRIVE!2022 strategy. The company has set itself five strategic objectives. By 2022, Opel and Vauxhall are aiming for 8 percent market share in Europe, with the focus on profitable growth. The profit margin (earnings before interest and taxes – EBIT) is targeted to reach 5 percent. At the same time, the company plans to further enhance the quality of its products as well as the satisfaction of its customers and employees.
Opel CEO Dr. Karl-Thomas Neumann: “In the past months Opel’s management team has worked hard on advancing the DRIVE!2022 initiative. The catalogue of strategic targets presented here today is the result of our efforts. We have already made the preparations for implementing the plan step by step. We have the full backing of our parent company General Motors.”
Opel is focusing on three strategic priorities: models, brands and an improved market penetration. The model and engine offensive is continuing at a fast pace. A total of 27 new models and 17 engines are planned for the years 2014 through 2018.
The second strategic priority is the strengthening of Opel’s image as an emotional, approachable and German brand. The values are brought across by such factors as technical innovations, German engineering skills, and good value for money. Technical innovations, for instance, are exemplified by OnStar, the next stage of vehicle connectivity that will turn the automobile into a Wi-Fi hotspot starting in 2015.
Market share and growth targets represent the third priority. By 2022, Opel plans to increase its market share in Germany from 7.2 to 10 percent. In Europe (including Russia and Turkey), the company aims to raise its market share from a current 5.8 to 8 percent. By 2022, Opel plans to become the number two in the European passenger car market together with its British sister brand Vauxhall.
Opel announced the DRIVE!2022 ten-year plan for the first time in summer 2012. In 2013, the company had already made substantial operational progress, cutting its losses in Europe by more than half. Opel expects 2014 to be a challenging year. On the one hand, the company continues to improve its operational business. On the other hand, non-recurring costs such as the closure of the plant in Bochum and volatile currencies will put pressure on earnings. Opel plans to return to profitability by mid-decade thanks to a number of measures, including lower product and structural costs, improved capacity utilization of plants, higher sales revenues and the improved brand profile.