Opel/Vauxhall is back on course one year after presenting its PACE! strategic plan.

Opel CEO Michael Lohscheller said: “PACE! works! Opel will be sustainably profitable, electric and global.

“This is something every employee can be proud of. We have managed to re-organise ourselves in the last 12 months and change our mind-set.

“We achieved a profit of 502 million euros in the first six months of 2018, and we are continuing to work hard on our success.”

Opel managed to cut its fixed costs by 28% in the first half of 2018.

Moreover, extensive agreements to improve competitiveness were signed with the company’s social partners at all sites, enabling a significant improvement of the labour-costs-to-revenue ratio.

The company also delivered on its promise to streamline its senior management, with a quarter of these positions cut over the course of the last year.

That said, Opel is standing by its goal of avoiding plant closures; investments are being made in the various sites, and multiple plants have already received new product allocations.

The company is increasingly benefitting from its integration into Groupe PSA (www.groupe-psa.com).

Vehicles based on the shared ‘Multi Energy Platforms’ are up to 50% more cost-efficient in development, while at the same time improving quality.

Extensive synergies are also being achieved in numerous other areas of the company, such as by the creation of integrated sales structures in many European countries.

The company plans to bring a total of eight new models to market in the next two years, and there will be an electric version of every Opel model in 2024.

A further key pillar of the PACE! strategic plan is a further strengthening of the brand, as well as a clear focus on profitable segments, channel mix and markets.

Mr Lohscheller added: “Opel will stay German, Vauxhall will stay British. We will also continue to differentiate ourselves from our French sister brands.”