In a bid to revive its fortune,
General Motors Company
) subsidiary Adam Opel AG is revamping its mid-size car Insignia.
The sedan will boast new engine and dashboard instruments.
Opel has been struggling to turn profitable for over a decade now
and refurbishing its existing car models is a key strategy
adopted for the purpose. This is the eighth model among its
eleven cars queued up for remodeling over the past three years.
The parent, General Motors, has also had a tough time in Europe
with losses in the region piling up to $18 billion since 1999.
The revamped Insignia, under production at Frankfurt suburb of
Ruesselsheim, will feature an efficient turbo diesel or gasoline
motors, simplified touch-pads and voice-activated navigation,
radio and wireless controls. General Motors intends to showcase
the sedan at the International Motor Show in Frankfurt in
September. With a starting price of €24,325 ($32,500) (including
sales tax), Insignia is Opel's costliest car.
General Motors refrained from selling Opel to
Magna International Inc.
) and Russian partner OAO Sberbank during the global economic
crisis in 2009. The company's executives promised to turn it
profitable by 2015.
General Motors also took several initiatives to sustain
profitability including closure of an auto factory in Germany,
reduction of workforce across Europe and pay freeze. GM European
operations showed improvement during the second quarter of 2013
as it reported a narrower adjusted loss of $110 million compared
with $394 million in the year-ago quarter.
Currently, General Motors retains a Zacks Rank #3 (Hold).
Other stocks that are performing well in the industry include
Ford Motor Co.
). Volkswagen is a Zacks Ranked #1 (Strong Buy) stock while Ford
carries a Zacks Rank #2 (Buy).
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
VOLKSWAGEN-ADR (VLKAY): Get Free Report
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