The CEO believes that “they have made mistakes in the past by focusing on volume” and that quality is their priority
Uwe Hochgeschurtz is the CEO of
Opel from the day the brand launched the new Astra, in September 2021. This model is essential for the company, as it “bridges the past and the future”, with thermal engines, a plug-in hybrid and, from 2023 , a 100% electric variant.
The Astra will thus join the 12 current zero-emission models owned by the only German brand of the Stellantis Group, which was created a year ago after the merger of the PSA consortia (to which it belonged) with FCA. It also indicates the future direction in the design that the manufacturer will follow, which we were able to check at its development center in Rüsselsheim (Germany).
One of the main problems he faced upon his arrival is the
positioning your brand within the manufacturer’s wide range, which is a total of 14. “It is the first decision a CEO has to make. Knowing who your customers are, your competition, how to reach the market…”, he explains. And if it’s true, it’s also true that – directly from Renault’s executives in Germany, Austria and Switzerland – he came to his post with a healthy profit and loss account.
Opel returned to profitability after joining the PSA Group in 2018. This trend has remained constant ever since – it wasn’t like that in his time at General Motors – and while they don’t reveal the numbers for every brand within Stellantis, they can “cover the investments with our profits, and these are very high because the transition from thermal to electric motors takes place.
“In the past we did a lot of things well and others not so well, like focusing on high volume strategies,” he admits. Today, he believes that selling a lot of cars is not the goal. «Of course you have to sell a minimum to cover the costs, but the same happens with the baker: if he makes good bread, he sells a lot. Volume is the result of a good car.”
By 2024, the brand wants to have an electrified version for each of its models and that it will only produce emission-free copies from 2028. “There will be exceptions in some markets, but there is no alternative: Europe has decided that mobility will be electric and that this is the only way to enter the city centre.”
For Hochgeschurtz, the industry is in uncertainty, which hinders the development of its activity the most. “Today we have three major problems that were impossible to imagine three years ago: the coronavirus, the shortage of chips and the war in Ukraine.” Of these three, semiconductors is the one that has influenced them the most.
“We had to shut down the factories to see our volumes drop. In 2021 we said, “Next year will be better”, and for now it’s worse. However, they have maintained their market shares – their competition is also suffering from shortages – and have met a lot of demand.
Looking ahead to the second half of the year, he believes that the situation will improve, but not that it will return to the pre-pandemic situation. “Geopolitically, it may not have been the best idea to only produce these components in Asian countries. […]because Europe is clearly served last.
Hochgeschurtz is clearly pleased with the subcompact, the bestseller in its segment in Germany, which will be getting a special edition this year. “It’s a very competitive car, made in a competitive factory.” In addition, he believes that there is a great name attached to it and there should be no need to change it, as other brands have done with the move to electrification.
He declined to comment on the possibility of producing models from other group brands in Figueruelas, but he said that in the long term, the battery factories will be located closer to the car factories for logistical reasons. “They are heavy and are considered dangerous, so it makes more sense to transport them from Valencia than from Germany.”
However, he denies that the decisions of its competitors influence Stellantis’ industrial policy and denies knowing the details of the Perte VEC, but “if it promotes electrification in Spain, there is no reason for us not to participate in it.”
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
