GM to Stop Selling Opel Cars in Japan
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General Motors to Stop Selling Opel Vehicles in Japan After Lagging Sales

TOKYO May 8, 2006 (AP)— General Motors, which has been struggling to revive its business, will stop selling Opel vehicles in Japan, the U.S. automaker's Japan unit said Tuesday.

Opel sales in Japan have been lagging at 1,800 vehicles last year, down from their peak in 1996 at more than 30,000, said Ayako Uchida, a spokeswoman for GM Asia Pacific (Japan). Opel sales will end before the end of 2006 as inventory runs out, she said.

Opel sales will target Europe, and General Motors Corp. will instead push in Japan GM's global brands such as the Cadillac, Saab and Chevrolet, Uchida said.

Opel cars are made by Adam Opel AG, a German subsidiary of General Motors.

GM reported Monday a $445 million profit in the first quarter of this year, compared to a loss of $1.3 billion in the January-March period a year ago. It was GM's first quarterly profit since 2004.

Last month, the world's largest automaker reported a preliminary first-quarter loss of $323 million, but said then the results could be revised. The revision was for changes in how GM accounts for a health care agreement and other items.

GM has been attempting a turnaround as it loses market share in the U.S., partly because of competition from Asian automakers, including Japanese companies like Toyota Motor Corp. and Honda Motor Co.

Opel has not attracted Japanese buyers, who favor Mercedes Benz cars from DaimlerChrysler AG, as well as offerings from Volkswagen AG and BMW AG.

Opel produces quite affordable cars but in terms of price they can't compete with the cars offerd in Japan.