New Opel CEO Neumann may have a mission impossible
|Paul McVeigh is managing editor at Automotive News Europe.|
Opel's new CEO, Karl-Thomas Neumann, is an auto industry veteran but he hasn't remained in a top job long enough to judge whether he will be successful in turning around General Motors' unprofitable European operations.
Neumann's task is huge. GM Vice Chairman Steve Girsky, who chairs Opel's supervisory board, told the brand's top managers in December that he is aiming for "the most successful comeback in the history of the European industry."
Neumann's main challenge is to meet GM's target of restoring the company's European operations to breakeven by 2015. To do that, Neumann likely will have to cut excess production capacity beyond the already scheduled closure of Opel's factory in Bochum, Germany. He must also stem the brand's plummeting sales, which fell 16 percent in Europe last year, at a time when the economic downturn that has sent southern Europe into crisis is expected to hit Opel's home market in Germany this year.
There are some positives for Neumann. The brand's product lineup is being refreshed with the recent launches of the Mokka subcompact SUV and Adam minicar. Both models join growing segments. The Cascada arrives in showrooms in April, giving dealers an upscale convertible in time for summer.