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FRANKFURT, Nov 19 (Reuters) - The head of Opel, the German unit of the world's biggest carmaker General Motors , said late on Tuesday he expected the company to post a small operating profit in 2004.
"We expect a small operating profit in 2004," Opel Chief Executive Officer Carl-Peter Forster told reporters in comments embargoed until Wednesday. "It is a tough target, given the market, but we will achieve it." Opel has been losing money for years but is in the middle of a turnaround plan aimed at returning it to profit. Company sources have said it is likely to post a loss in the triple-digit millions of euros in 2003.
It said earlier this month it was cutting the working week for 5,500 employees at its main production site to 30 hours from 35 in a bid to reduce costs and avoid layoffs.
The company, which employs around 21,000 people in its home town of Ruesselsheim, said the move was vital if it is to meet its target of breaking even next year.
Opel has suffered from a staid product line-up in a stagnant car market, though it is launching an updated version of its key Astra hatchback, a rival to Volkswagen's top-selling Golf, which was also relaunched last month.