German automaker Opel said on Thursday its supervisory board has approved deep restructuring to steer the firm, a loss-making unit of U.S. car giant General Motors (IW 500/5), back into profit.
"At its meeting today, the supervisory board of Adam Opel AG approved a business plan that will be fundamental in steering Opel back to profitability on a lasting basis," the car maker said in a statement.
The measures include "massive investment in the product range of the Opel and Vauxhall brands, and a new marketing strategy," the statement said.
Material, development and production costs will all be cut and "better use made of synergies arising from the tie-up between GM and French partner PSA Peugeot Citroen [IW 1000/43]."
"The plan paves the way for a strong future at Opel," said GM vice chairman and supervisory board chief Stephen Girsky.
His deputy, Wolfgang Schaefer-Klug, saw the business plan as "a good basis for Opel's future."
Opel is under pressure from GM to cut costs, suffers from high production costs and is vulnerable to the eurozone crisis, since GM will not allow it to export outside Europe so as not to compete with its own brands.
Copyright Agence France-Presse, 2012