Global Output Key For Opel

Globalisation means taking calculated risks and moving into new markets in order to survive in traditional ones, GM Europe president Richard Donnelly told a news conference at the Paris Car Show. GM Europe sells cars under the Vauxhall brand in Britain and Opel in the rest of Europe.

Manufacturers like Volkswagen AG in Germany have been shifting production of cars and components out of high wage areas like western Europe to China, Latin America and eastern Europe.

But GM Europe, owned by General Motors Corp of the US, sees these areas as potential sales centres as well as production areas.

 

Building new plants and creating new jobs in Eastern and Central Europe, Asia, and South America safeguards jobs at our existing facilities in Europe, Donnelly said.

Last year because of the company's international efforts we sold 800,000 cars based on the Corsa platform in 75 different countries, Donnelly said. The Corsa is a small family car which competes with the Volkswagen Golf and Renault Clio. Donnelly forecast a modest sales increase in western Europe this year.

The western European car market will total about 12.65 million units in 1996, an increase of five per cent over last year, and the best market since 1992, Donnelly said.

This is in line with mainstream forecasts for Europe's car sales.