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Opel Media Information


									Media Information

February 9, 2010

Opel/Vauxhall CEO Nick Reilly unveils ambitious Plan for the Future

Product offensive and new investments to put Opel on a sustainable path

    Opel to invest €11 billion by 2014
    Positive assessment of company’s plan by independent auditors Warth & Klein
    Opel formally applies for loans or loan guarantees
    New product offensive to utilize Opel design and technology expertise
    Focus on alternative propulsion, desirable core products and growth markets
    Break-even by 2011, profitability expected by 2012
    20 percent capacity reduction across Europe

Frankfurt/Rüsselsheim. Chief Executive Officer Nick Reilly today announced an ambitious
five-year €11 billion Plan for the Future that will reinvigorate 80 percent of Opel/Vauxhall
carlines and place a strong emphasis on alternative propulsions.

At the same time, Reilly said the external auditor Warth & Klein judged the plan sound and
viable. With this assessment, the company this morning formally applied for loans or loan
guarantees from the German government.

“We are extremely pleased that we now have independent confirmation that our plan is
sound and will place Opel and Vauxhall on the road to sustainable, long-term profitability,”
Reilly said. “We now have a road map, we know where we are headed and we are working
with all our partners so we can switch into high gear for a successful future.”

The viability plan envisions that 80 percent of the Opel/Vauxhall carlines will be at an age
of three years or less by 2012. This includes eight major launches in 2010 alone – such as
Meriva, Corsa, Movano and Astra Sports Tourer – and another four in 2011, most notably
the extended-range electric vehicle Ampera, an industry-first in Europe.

Adam Opel GmbH             
D-65423 Rüsselsheim
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In addition, Opel/Vauxhall will spend €1 billion in innovative and fuel-efficient powertrain
technology as it introduces a range of new green products. This includes:

   Launching an extended-range electric vehicle in addition to the Ampera
   Introducing pure battery-electric vehicles in smaller-size segments
   Expanding LPG and CNG applications, start/stop technology and right-sizing of

In addition, the company has accelerated efforts to introduce an entry in the sub-Corsa
segment and to make a strong push in the light commercial vehicle business. Several
studies are under way to look at possible profitable export programs in the Middle East and

“Opel/Vauxhall has a clear vision: to be a leading European manufacturer of high quality,
desirable automotive products, based on German engineering, driven by a united team of
professionals and respected around the world. This vision will be realized by offering an
exciting and expanded product portfolio based on a strategic push into alternative
propulsion technology,” said Reilly.

In order to support this vision, the company has sharpened and refined its brand DNA and
product pillars, and is embarking on a program that ensures this DNA is engrained in every
future Opel/Vauxhall product. Future products will be developed in Rüsselsheim at the
International Technical Development Center. If they are based on a vehicle architecture
developed elsewhere, they will return to Rüsselsheim early to ensure they deliver on the
Opel/Vauxhall brand promise.

€11 billion investment over next five years

The viability plan requires long-term funding of €3.3 billion to run the business during the
transformation. In total, the company plans to invest approximately €11 billion over the next
five years.

As part of the €3.3 billion funding requirements, parent company GM has already injected
€600 million into the new Opel/Vauxhall business. In addition, GM provided €650 million in
advanced payments in January to ensure appropriate cash positions. The company will
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continue to work with European governments to secure funding of approximately
€2.7 billion through loans or loan guarantees. Discussions with employee representatives
about the overall plan continue both on European and national levels.

“We will build a European company that is profitable, self-sustainable and fit for the long-
term,” Reilly said. “This keeps a manufacturing base in Europe. It is good for Europe, good
for our employees and good for our customers. We therefore trust that the plan will be
supported by our employees.”

Major restructuring to include 20 percent reduction in capacity

The business plan foresees Opel/Vauxhall will break even by 2011 and be profitable by
2012. It is predicated on economic forecasts that 13.4 million cars will be sold in Western
Europe this year – a reduction of more than 20 percent from 2007. Opel/Vauxhall does not
believe the market will come back to the levels seen earlier in this century for quite some

To adjust to the current and forecasted market environment, Opel/Vauxhall will reduce its
capacity by approximately 20 percent. This requires a job level reduction of approximately
8,300. That reduction will be spread out across most of Europe and includes 1,300
employees in sales and administration and 7,000 jobs in manufacturing. This includes the
intent to close the Opel production facility in Antwerp, Belgium, as previously announced.

Once the capacity reduction is implemented, the company is expected to run at
approximately 112 percent of its capacity on a two-shift basis and 87 percent on a three-
shift basis and therefore has – along with other potential measures – sufficient upside
potential once the market starts to recover.

The company has eliminated the former GM Europe management structure in Zurich,
Switzerland, and is now managed from the Opel brand headquarters in Rüsselsheim,
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Market share maintained due to strong new vehicle launches

Opel/Vauxhall started 2010 with confidence. The company maintained a 2009 market
share of 7.59 percent in Western Europe in spite of tough price competition. Opel
increased its market share and regained the number two position in its German home
market, while Vauxhall remained number two in the United Kingdom. Sales of the Opel
Insignia – European Car of the Year 2009 – jumped to 160,000 in 2009. In Europe, the
Opel Insignia is the leader in the medium sedan segment. The new Astra won the
prestigious European Golden Steering Wheel award (Goldenes Lenkrad) and several other
awards even prior to its market introduction. More than 75,000 orders for the five-door
version have already been placed.

Recently, the DEKRA vehicle monitoring organization reported Corsa had the lowest
breakdown rate of all cars on the market in Germany. Despite a 16 percent reduction in
volume, the company still was able to reduce Hours per Vehicle by four percent, an
indication of its manufacturing excellence. Opel/Vauxhall for the first time reported less
than 20 HPV – an industry milestone only achieved by two other companies.

“Today’s announcement marks the beginning of a new era for Opel/Vauxhall. It is the
biggest overhaul in the company’s recent history,” said Reilly.

“We now have all the necessary ingredients for a successful future in place: a motivated
workforce, a new and accountable company culture, a product offensive based on
innovative and highly fuel-efficient technology, a competitive cost structure based on
conservative volume assumptions, a dedicated management team operating out of our
Rüsselsheim headquarters, and the support from so many stakeholders. Now it is up to us
to prove that we can do it. I am confident that we will,” he added.


Stefan Weinmann                               Ulrich Weber
Tel: + 49 (0) 6142 7 77339                    Tel: +49 (0) 6142 7 72279
Mobile: +49 (0) 175 228 9452                  Mobile: +49 (0)160 9785 1410         

Further information about Opel’s Plan for the Future can be found at
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Manufacturing Operation Plan

Plant            Plan                                                           Reduction
Antwerp          Intention to close Antwerp plant and to relocate current          2,377
                 Astra HB3 to Bochum until new HP3 is launched,
                 announced on Jan. 21st
Bochum           Exclusive allocation of new Zafira in 3 shift production at       1,799
                 adjusted capacity. F13 transmission production will be
                 closed and replaced by F17 transmissions out of Aspern

Ellesmere Port   Produce Astra HB5 and Astra SW; add 3rd shift Mid 2011.               0
                 Final volume output determined by plan capability

Eisenach         Produce all HB3 from current Corsa; relocate HB3 specific           300
                 stampings from Zaragoza to Germany. 3 shift utilization with
                 NG Corsa
Gliwice          Production of NG Astra HB5, NB4 and HB3; introduction of              0
                 3rd shift as of Mid 2010
Luton            Continue production of current product line-up until end of         369
                 lifecycle in CY 2013; new business opportunities under
Ruesselsheim     Exclusive production location for all Insignia variants; add        862
                 new Astra HB5 flex as of 2011. Relocate F40 transmission
                 to another plant
Zaragoza         Keep current 2 line system and installed capacity. Leading          900
                 mfg. facility for GSV platform beyond 2013. Volume shares
                 agreed for Zaragoza and Eisenach. Allocation of new
                 Combo and other Corsa GSV derivatives in case of positive
                 business case.
Aspern           Continue production of M20 / M32 MT6 gearbox and of                   0
                 Fam. 0 (1,0, 1,2 and 1,4) gasoline engines; increased
                 production of F17 gearbox due to replacement of F13 by
Szentgotthard    Production of Fam. 1 gasoline engines (1,6 and 1,8) and of            0
                 Allison transmissions
Kaiserslautern   Utilization as highly competitive press and component               300
                 supplier. Diesel engine remains for lifecycle, L850 engine
                 production will be discontinued in CY 2011 due to low
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Reductions in Sales and Administration Areas

Country         Reduction

Germany            650

UK                 150

Belgium            110

Switzerland         80

France              50

Hungary             40

Italy               40

Poland              40

Russia              40

Netherlands         20

Sweden              10

Portugal            10

Switzerland         10

Others              50

Total             1.300

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