Cost-cutting: how much Opel wants to save per car

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Opel CEO Michael Lohscheller
Opel CEO Michael Lohscheller.

Opel’s new strategic plan places plenty of emphasis on cost-cutting as its new owner, the PSA Group, seeks to return the German brand to profitability by 2020.

But exactly how much is Opel looking to save on each car it produces? Well, the automaker says it plans to reduce costs by some €700 (about R11 850 at the current exchange rate) per car.

According to Automotive News Europe, €400 (about R6 760) of the proposed saving will come from “manufacturing and logistics”.

Opel furthermore says its marketing expenses will be “improved by more than 10%”, while overall efficiencies will be increased by reducing complexity across all functions.

The central plan is to launch nine new models by 2020, with all Opel passenger vehicles being based on one of two PSA Group architectures by 2024 (the brand currently uses as many as nine platforms). In addition, the powertrain family will be cut from 10 to four.

The report furthermore adds that the Rüsselsheim-based automaker believes it is underselling its products, and will thus seek to improve pricing, which it says is currently 5,6% below the industry benchmark.