Speaking to the Financial Times, Neumann said the budget sector was "very interesting," and confirmed the brand was "definitely looking at the segment."
The plan involves bringing in two new low-cost models to plug the gap left by Chevrolet, which will be axed from the European market next year.
One of the cars has already been spotted testing, and is likely to be badged as Viva when it makes its debut at the Geneva motor show in March next year.
Sitting alongside the Adam and below the new Corsa in size, the car is based on the next-generation Chevrolet Spark, but likely won't be priced to compete with the £5995 Dacia Sandero. Instead, Vauxhall is understood to be pitching the new model towards the Ford Ka, which costs from £8945.
"We think there is possibility for Opel to come up with some entry-level product, specifically now Chevrolet is out of the market," said Neumann. "We had Chevrolet, which looked like a budget brand, but it was not."