Business

The Stunning One-Year Turnaround of GM’s German Castoff

France’s PSA swiftly pushed Opel back into the black after nearly two decades of losses.

New Opel automobiles in a dockside parking lot at the U.K.’s Port of Killingholme on July 19, 2018. 

Photographer: Jasper Juinen/Bloomberg

The giant Opel factory in Rüsselsheim, an industrial city a half-hour’s drive west of Frankfurt, appears little changed from last summer: Employees still wear “We are Opel” T-shirts. The melody that rings out every few minutes, signaling that someone needs assistance, is the same. Body panels for Insignia sedans and Zafira minivans still follow the same yellow marks on the concrete floor on the way to their “wedding,” where workers add the engine and transmission to the frame.

One thing, though, is dramatically different: The cars that roll off the end of the line are sold at a profit. “When I see friends in the pub, I can finally put the keys to my Opel on the table with pride again,” Matthias Deschamps, a 33-year assembly-line veteran, says looking over the production floor. In July, when the carmaker reported its first profit since 1999, “there was a big sigh of relief.”