Opel says to beat 2002 output goal for new Vectra car

FRANKFURT, Sept 2 Reuters reported that German carmaker Opel said it is set to beat its production target for its new mid-sized Vectra car on the back of strong demand and that it has introduced extra shifts to cut waiting times.

A spokesman for the loss-making unit of the world's largest automaker General Motors Corp said Opel looked like building about 165,000 Vectras in Europe by the end of the year, compared with its original target of 150,000.

The Vectra is a key product for Opel as it tries to reach breakeven by the end of next year amid declining auto markets in Germany and in Europe overall. It introduced the Vectra in the spring and now has about 70,000 orders.

"Demand has increased massively and we are introducing extra shifts on Saturdays to deal with growing delivery times and next year we will introduce night shifts," said the spokesman.

Buoyant demand for the new vehicle combined with faster than expected progress on cost-cutting will have a positive effect on Opel's bottom line this year, said the spokesman.

"We will report a result significantly better than last year," he said.

He declined to give a specific forecast, but analysts and media reports have suggested an operating loss of 400 million euros would be realistic for this year compared with a loss of 674 million euros last year.

The company has said since the start of the year it planned to cut its operating loss this year.

GM said in July it would fall short of its goal of halving losses this year at its European automotive operations, which include Saab and Vauxhall as well as Opel.