Important visitors today in Angela Merkel’s chancellery in Berlin: A delegation of German Opel dealers. They present a plan for a truly German future of Opel. The title of the plan: “We believe in the future of the Opel brand.” What the dealers and the German government don’t quite believe in is the future of the US bail-out package. Everybody is preparing for the worst, the defeat of the General, and (in their eyes) the best: Opel, German again.
The delegation is led by representatives of several well-heeled dealer groups. As early as November, plans had surfaced that a consortium of dealers is ready to take over Opel if the previously unsinkable should go down. The Opel works council has openly supported the plan. Opel management is giving tacit approval, without sticking their necks too far out. Recriminations from Zurich or Detroit can be swift. There is an update:
They finished their presentation. The parties agreed on absolute confidentiality, so mum’s the word. There will be further consultations, soon, after all in the meeting have completed their homework. The plan is to launch a new European company in case of “insolvency or liquidation of GM.” The idea is not a German solution, but a European one. They are not thinking about “re-nationalizing Opel.” The plans are European, and involve other brands also. “Everything we are thinking and doing is European,” said Kurt Kröger, Managing Director of Opel dealer Dello to Autohaus.
If Opel went independent would it be “big” enough to be viable?
If Opel went independent would it be “big” enough to be viable?
Just what I was thinking. I think that they’d have to partner with someone else. I see the Chinese in their future.
Throw Vauxhall and Saturn in with the deal.
Then they’d probably be big enough.
Wow, after that Chrysler might have a larger European marketshare than GM.
Hmmmm. I remember once when a bunch of executives borrowed a bunch of money to buy a failing motorcycle company from it’s negligent corporate master. They implemented a lot of quality controls, and got back to the roots of what the company was doing. Harley-Davidson seems to be doing fine, all things considered.
Actually – I’d think GM is not big enough without Opel, rather than the reverse… Aren’t basically all GM’s foreign operations based on selling Opel cars?
Go for it Germany, and grab Saab, Vauxhall, Saturn and Holden while you are at it. Any intelligent, hard-working, focused management team can do a better job with the assets formerly known as General Motors than the Wagoner gang has done.
Actually – I’d think GM is not big enough without Opel, rather than the reverse… Aren’t basically all GM’s foreign operations based on selling Opel cars?
Well, there’s also Daewoo and Holden, but Opel pretty much developed GM’s global platforms (Delta, Epsilon).
“Opel management is giving tacit approval, without sticking their necks too far out.” – is this based on some concrete information or from “sources close to the matter” or just pulled out of thin air ??
If Opel went independent would it be “big” enough to be viable?
Good question. Possibly, yes. I doubt Opel makes much money off GM (and GM’s prevarication about transferring money back to them doesn’t make it any better). Add in GM’s pigheaded insistence on implementing Chevy-woo and Cadillac, thus stomping further on Opel’s European sales.
Meanwhile, Opel has a healthy product mix in it’s markets and was making reasonably money in most of it’s markets, no thanks to GMNA. Meanwhile, GM owes Opel a lot for R&D work on the Epsilon and Delta cars, as well as powertrain work on the Ecotec and HFV sixes.
I think Opel could survive without GM. Heck, I think Opel could prosper without them, especially in Opel’s native markets–the ones GM is busy trashing. The problem is that, like Mazda and Volvo, Opel is primary engineering provider for a lot of GM’s worthwhile cars. If they go, what does that leave GM with? Rebagded Daewoos and the GMT900. What does Opel loose? The Antara, billions of dollars in liability, some excess Astras that they can’t sell and two European competitors.
Can GM afford to let Opel go?
Anybody know what happens to the patents for say the epsilon platform if Opel does become independent ?
Does Opel own those patents? Can they just continue making and selling those cars? Or do they have to buy those rights from/pay royalties to GM?
Maybe I am wrong, but I think GM would own those rights. What if they refuse to sell those to Opel?
GM won’t sell Opel in anything short of a Chapter 7 auction. So why bother even discussing it until then?
Anybody know what happens to the patents for say the epsilon platform if Opel does become independent ?
Does Opel own those patents? Can they just continue making and selling those cars? Or do they have to buy those rights from/pay royalties to GM?
Maybe I am wrong, but I think GM would own those rights. What if they refuse to sell those to Opel?
That would of course depend on the deal. But I’d think that both parties would be allowed to keep them, anything else just wouldn’t make sense. GM would never sell Opel together with the exclusive rights for their platforms, on the other hand nobody would buy Opel if they had to develop a new line-up.
However, the problem isn’t with the current platforms, but with future ones. Should Opel leave the family, who’s going to design the next generation platforms at GM? Are there enough engineers left in Detroit?
Anyway, the Rüsselsheim R&D center is Opel’s crown jewel. Should GM try to sell Opel without it, it ain’t gonna happen. Without it, Opel’s dead.
Yet, as of now, these are all rumors anyway. With GM filing for bankruptcy soon, who knows what’s going to happen…
Lets see…GMNA and maybe etal go C11, GME (Opel, Vaux and Saab all supported by their respective gummints) is split off and would now be competing head-on with any new NA incarnations? (with the small exception of Saab, GMEs cars are not sold in NA) Prolly great for them, US? Holy S!!! Everyday US automakers look more and more “up the creek”.
with the small exception of Saab, GMEs cars are not sold in NA
Funny, I must have been hallucinating that Astra I saw yesterday.
Funny, I must have been hallucinating that Astra I saw yesterday.
He said “not sold in NA”. He’s right. Astras don’t sell in North America.
Saturn is selling the Astra in America… and losing money on each sale.
But aside from that, is anyone wondering why America’s GM dealerships aren’t trying to buy GM… like the German Opel dealers are trying to do with Opel?
It looks like GM dealerships have no faith in their product.
@ gogogodzilla:
The reason why the dealers wouldn’t buy GM is because GM is dead. Seriously, their total equity was at $-60 billion at the end of the third quarter 2008. So if they’d buy anything, it’s individual brands. But to buy the mothership would be suicide.
@psarhjinian :
What does Opel loose? The Antara, billions of dollars in liability, some excess Astras that they can’t sell and two European competitors.
Don’t forget the Agila (Suzuki Splash clone, brought in through the GM-Suzuki partnership) and the Opel GT (Saturn Sky) – both could be replaced easily: Opel already has a Renault/Nissan connection for commercial vehicles, so they could get a competent RWD platform for a homegrown GT there.
Opel’s own RWD platform competence has been exported to Australia though – the Holdens are built on an evolution of the old Omega platform.