Today, management of Opel presented a rescue plan to the Supervisory Board of the Opel GmbH. The bottom line of the plan: A decoupling from GM. According to Automobilwoche [sub,] the plan and the decoupling has been approved by the Supervisory Board. The head of the Supervisory Board is Carl-Peter Forster, who’s main job description is Head of General Motors Europe. It looks like GM will let Opel go. Well, not quite yet.
For the time being, Opel will be an independent company, but will still remain a part of GM. “We all believe that in Europe it is important for a company the size of Opel to be part of a large corporate group, to enjoy economies of scale and access to intellectual property,” Foster said. The decoupled-but-still-in-the family Opel is open for other investors, Foster said. Anywhere between 25 and 50 percent would be possible.
As far as immediate cash needs go, Opel needs €3.3b as government loan guarantees. Furthermore, the plan assumes another €3b from GM in Detroit (good luck with that) and savings of €1b. The approved rescue plan will be presented to the German government on Monday. Berlin had made any monies to Opel dependent on such a plan, and a plan that prevents that the government Euros will somehow turn into Detroit Dollars.
This is the first step to the German governments (central and states) taking a controlling share of Opel, and to Opel being broken out of GM. It sounds like GM put a €3b price tag on the patents and designs necessary for a totally independent Opel.
Wow!
Meteorite strike causes planet to shatter.
Breaks into multiple smaller objects.
The question is how many will remain orbital (and sustain life) on their own.
Bunter
Sure glad I didn’t succumb to that Astra temptation I had a year ago…
Link to Bloomberg article
General Motors Corp. may give up as much as 50 percent of its Opel unit after 80 years of ownership as it seeks 3.3 billion euros ($4.2 billion) in European state aid to save what’s left of its carmaking in the region.
Opel will be transformed into a separate legal entity following a meeting of the unit’s 19-member supervisory board at its base near Frankfurt, GM said today in a press briefing.
“Opel needs to remain part of GM but will be considerably more independent than at present,” said Carl-Peter Forster, the Detroit-based company’s top executive in Europe. The unit has “a profitable future” but needs to reduce capacity, he said. No decision on plant closures or job cuts has yet been taken.
Perhaps if GM falls apart into smaller pieces with local management, those pieces might be able to move more swiftly and survive.
So far the split seems to be more cosmetic than real. Operationally Opel still remains under GM’s thumb, for the moment. It looks like they are doing the minimum necessary to try and break cash free from European governments.
Without IP ownership, it’s just a shell company. What in fact are they letting loose? Overcapacity, to be unburdened by european taxpayers?
“Let my Opel go!”
German gov’t will step in with EIB money (will twist EU to release it), which is why they’ve been keen to keep Vauxhall and Saab on board, since that would make it a cross-Europe venture, and not just money for Germany.
Shaking head over utter stupidity of GM, required to come to this dead-end. Remember not that long ago, when they were moving Cadillac production to Trollhättan, and Saab to Rüsselsheim?
I’m starting to believe that GM management’s been making decisions as part of a complicated drinking game involving blind-folds, darts and some southern hooch.
What of Vauxhall?
John Horner-That would certainly fit well with GM’s MO-“Do the minimum required”.
Worked well so far, hey, their the largest automak…never mind.
Bunter
So, after 80 years Opel is back in German hands? Who could have predicted this even a few years ago. GM’s descent into oblivion has been breathtaking..
It’s a scam, and I don’t think the europeans will buy that. Without IP ownership, Opel is worthless, in fact a liability. What is there to save for 6 billion euro? Some factories? Doing what?
@kkop:
Who would have predicted this? TTAC did.
In just what way is Opel independent? And who exactly is going to step up and buy 25-50% of a company still controlled by / influenced by / hamstrung by GM?
This is a dream, as evidenced by the “$3B from Detroit” part, and they are hoping nobody wakes up before they can cash the check from the German govt.
Its about time GME “dummied-up”. Having your bank accounts linked to the money and innovation sucking vampire GMNA is has NO future…duh!
Opel and Saab should be chasing VW/Audis market share bigtime cuz VW aint all that.
Hey Saturn dealers, here is the new source for your 2012 models.
“GM isn’t going to pieces and Rick Wagoner will turn a profit.” does that qualify one for Board membership?
Yes, you fit right in.
This is interesting. According to Süddeutsche Zeitung (Literally, the newspaper of the south), Opel’s IP was valued € 1.8 by GM, but GM never actually transferred the money, and the transaction is to be reversed.
Maybe if GM pays the 1b Euro it owes and participates as a minority share holder.
As long as they have majority they will just steal German taxpayer money.
It’s a trick.
This is the perfect opportunity for Opel and Saturn to team up so that all of the cool Opel cars could be sold in the US. Just think if we could get the new Insignia – now that would spoil the Chevy Malibu’s party. I wonder how well the Corsa would do?
I suspect that GM is used to being the 800 lb. gorilla which can push everyone else around and mostly get its way. The problem for them is, now they are dealing with governments who have platoons of 800 lb. gorillas.
Perhaps the German government would like to start a criminal probe using racketeering charges against GM Corporate for any unwarranted transfers of intellectual property rights away from Opel. How many GM executives would have to face the possibility of jail before they would suddenly change their tune and tone?
I understand that GM owns Opel and Holden, what else do they own outside of the US? Daewoo is owned by Holden is owned by GM, SAAB was/is owned by GM. Who else is out there?