Report Says All Future GM Mid-sized Vehicles to be Developed By Germany's Opel

FRANKFURT, May 29, 2004; Reuters reported that Germany's Adam Opel will in future develop all of parent General Motors Corp's mid-sized vehicles, Opel's chief executive was quoted as saying on Saturday.

As part of a restructuring of GM's European activities, Opel will assume a central role in the mid-sized class, Welt am Sonntag said in a pre-released article to be published on Sunday, citing Opel chief Carl-Peter Forster.

"In the past we developed vehicles of the same class in several areas of the world. We do not want to continue to do so; this will be more strongly consolidated," the paper quoted Forster as saying.

GM Europe, which alongside Opel includes the Saab and Vauxhall marques, is aiming to make profits from next year, helped by the revamp.

Forster said Opel should turn a profit this year.

It posted a 384 million euro ($470.7 million) operating loss in 2003 as weak sales, currency effects, discounts and an overhaul of its sales netwrok took their toll, but is counting on cost cuts and the new version of its Astra hatchback -- launched in March -- to drive profits this year