Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Management reorganization at General Motors and the scaling back of the companys union with PSA Peugeot Citroen, have provoked certain insecurity over the carmakers strategy for Opel in the U.S. At the same time, European carmaker business seemed to become more stable.

A Reuters reported The sixth boss of Opel over the last ten years – Kar-Thomas Neumann has helped to land a multi-billion Euro investment from bosses in Detroit, which is considered a great splash at the loss-making business. The General Motors decision to withdraw its Chevrolet brand from the European market and become more focused on Opel and Vauxhall brands is also considered a Mr. Neumanns merit.

This month General Motors appointed Mary Barra for a chief executive officer, which made some Opel staff question these advances. Ms. Barra is said to had been chosen thanks to the fact she manages to bring “order to chaos” when it comes to global production development, as reported by Reuters earlier today. The new chief executive of the company is supposed to take care of vehicle development and make it even more efficient.

When it comes to using global platforms and minimizing the level of expensive customization, Opel feels quite pressured, because its ability to compete with rivals has been maimed by the European market.

General Motors Co.s reorganization does not stop here. Steve Girsky, who has successfully led a campaign concerning more investment in Opel, is to leave his position as a vice chairman of the company. One of the Opel employees, who specifically asked not to be named, said for Reurters: “A major Opel protagonist is leaving and nobody knows whether General Motors will maintain its high-level commitment to Europe.” One of the spokesmen of General Motors Co. explained that the company does not intend to change its position on Opel.

General Motors also announced that due to a failure to reach cost targets, the company is withdrawing from an alliance with PSA Peugeot Citroen. This was a great blow for Opel, which was relying on such a partnership in order to widen its range of small cars.

According to CNN Money, the current share price of General Motors Co. is 2.35% down, and its one-year return rate in 39.78% up. The 15 analysts offering 12-month price forecasts for General Motors Co. have a median target of 49.00, with a high estimate of 56.00 and a low estimate of 39.00. The median estimate represents a +21.59% increase from the last price of 40.30.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Binary Tribune’s Trading Signals for August 4th 2016Binary Tribune’s Trading Signals for August 4th 2016 EUR/USD: Buy at 1.1124, TP1 - 1.1157, TP2 - 1.1166, TP3 - 1.1174, SL - 1-2 pips below 1.1100.Sell at 1.1174, TP1 - 1.1141, TP2 – 1.1133, TP3 - 1.1124, SL - 1-2 pips above 1.1199.If break and close above 1.1199, buy with TP at […]
  • WTI Futures Advance 1.75% to $66.12, Brent Crude Contracts Rise 1.42% to $67.82WTI Futures Advance 1.75% to $66.12, Brent Crude Contracts Rise 1.42% to $67.82 Key Moments:West Texas Intermediate (WTI) crude futures rose to $66.12 during today's trading session, climbing $1.14 or 1.75%. Brent surged as well, rising 1.42% to $67.82. OPEC+ plans to increase production by 411,000 barrels per day […]
  • USD/CAD steady ahead of US ISM non-manufacturing dataUSD/CAD steady ahead of US ISM non-manufacturing data US dollar was almost unchanged against its Canadian counterpart on Monday in expectation of the service sector activity report out of the United States and amid uncertainty over the future of FEDs asset purchasing program.USD/CAD reached a […]
  • Forex Market: GBP/USD daily trading forecastForex Market: GBP/USD daily trading forecast Yesterday’s trade saw GBP/USD within the range of 1.4632-1.5149. The daily high has also been the highest level since March 6th, when a high of 1.5257 was recorded. The pair closed at 1.4978, gaining 1.58% on a daily basis.At 8:30 GMT […]
  • Oil rallies on upbeat U.S. and China dataOil rallies on upbeat U.S. and China data Oil prices extended Wednesdays advance on Thursday as upbeat U.S. and China economic data offset EIAs bearish inventories report. Both benchmarks are back on track posting their best monthly performance since August 2012 and Brent drew further […]
  • AUD/USD higher, greenback pressured after weak home salesAUD/USD higher, greenback pressured after weak home sales Australian dollar edged higher against its US counterpart on Tuesday, as the greenback was still experiencing pressure after the not so optimistic data, regarding existing home sales in the United States, released yesterday.AUD/USD reached […]