The BBC reports that GM’s European division Opel has learned a valuable lesson from the German government. Insolvency law was “not set up for the destruction but for the preservation of economic assets,” German Interior Minister Wolfgang Schaeuble said after meeting with Opel leaders. “The public perception is that insolvency is associated with going bust or bankruptcy, but that is wrong. We must grasp that to survive such a crisis, modern insolvency rules are a better solution than the state taking a stake.” Hint, freaking, hint. And just why is the German government so jazzed about seeing Opel restructure on its own? Accoding to the Beeb, “media reports suggest that the German government was angry that the bail-out proposal—which asked for 3.3B euros ($4.16B)—was simply a glossy 217-page brochure which read like an advertisement, rather than presenting any viable business plan.” Sound familiar? Apparently German members of parliament were also shocked to learn that Opel doesn’t own its factories (GM does) or intellectual property. As in GM has hocked all of its Opel IP to the US government as security for its own bailout. Classy. Now, as the worm turns, even the Canadians are saying they don’t want to go through with the bailout if it’s a “waste of taxpayers’ money.”
I’m glad you guys caught this – we need to make German Interior Minister Wolfgang Schaeuble an honorary member of the B&B!
I think you are missing a couple ‘r’s in “restuctue”
Finally, some government sanity. Let’s hope it’s contagious and spreads like wildfire. It’s kind of like GM was a crack addict looking to mortgage the house 100x over, but the German government looked into their history and saw they already had a mortgage for 10x the value of the home, and then discovered their stint in rehab, then required them to take a drug test and the drug test came back loaded with everything you can possibly fail on a drug test. Plus, they are sitting in front of you and shaking and going through withdrawals, you can’t really ignore that, can you?
“No solvency, no cash for you.”
GM sure is having a problem with the German shakedown program.
It never occurred to them that Germans don’t like GM very much – see this is what happens when you don’t travel much outside the Midwestern US too much – “what do you mean you don’t like us? We’re ‘merican’s!”
German’s apparently picked up a trick from the Chinese and that is wait until the company is officially foreclosed on – then buy up the assets.
The new (and improved) Opel will be 100% German and will promptly march on Belgium – sorry I could not resist that one. My bad.
“No solvency, no cash for you.”
Is that anything like “no soup for YOU!”
No, wait, that was a soup Nazi. They’re gone from Germany, thankfully.
(Sorry – couldn’t resist).
Yeah, GM has hocked everything – just exactly WHY would any foreign government lend that entity one single penny/pfennig (whoops not used any more/centavo/cent/farthing (no longer used but you get the point)
@McDoughnut:
Why should we (yes I am German) throw money down GM’s throat? They will take it and still abandon Opel, like they already announced they will, as it is a must that they are able to take the US government loan.
So the German government said that they would only give money to Opel, if it is sure that the money will stay in Germany. As GM has already transferred the only assets of true value, the IP of Opel, I don’t see why the government should support it.
Last but not least, the Opel buyers are a very conservative bunch of guys that most likely will only consider an other German make as next car. I guess Ford or VW will pick up most of their sales.
the bad part of this is that Opel has provided the chassis development for most of GM’s North American volume cars, and now this “asset” is gone. You know the last thing on earth GMNA will do is hire new US based engineers to do the work here for future generations. Opel was very, very good at this, and is the reason GM’s recent car platforms have been competitive.
Malibu, Aura, G6, Cobalt, Astra, Vue, Equinox, Cruze/Volt…all based on Opel chassis.
So who will do all of GMNA’s car chassis development in the future? Daewoo!
Opel is a significant asset of General Motors and losing them will seriously handicap the company, whether they go into bankruptcy or not. The Chevrolet car lineup in America may end up looking more like the Chevy car lineup in Europe…utter garbage.
GM is over.
Re Diewaldo:
I agree – I think that Germany is the only country standing up to GM right now. It is very interesting to see their reaction – I think that they are amazed and did not see this coming.
Told you so. It’s a scam, and the europeans won’t buy that.
To paraphrase Mr X from JFK: “Ultimately, people are suckers for the truth.”
Geeze, even the Canadians are standing up to them?
If you’re business model is pathetically broken, such that you can’t even arm-twist the Canadian Federal Government, you’re truly sunk.
Pity they don’t have a Quebec plant any longer.
Re psarhjinian :
Well, the Canadian Gov`t is trying to stand up to them – we will see just how long they can keep it up.
You`re right about Quebec! If that factory was still open they`d be dump trucks full of cash headed for Oshawa!
If GM were smart they`d announce a new factory (in Quebec) staffed exclusively, by handicap cross dressing first nation decedents. How could they say no to all that political correctness.
It sounds to me like Canada, Germany, and Sweden are learning to say NO. What about Britain and Spain?
There is a very good write up on Opel in todays Telegraph newspaper (www.telegraph.co.uk) for those who might be interested in this thread!
The Canadian government drawing the line? Don’t you believe it. For example, Ottawa has been scurrying around setting up a bailout for troubled mortgages assets. They don’t talk about it much, though, and neither do their getaway drivers in the Canadian media.
The current Canadian government calls itself conservative, but it has already proven it can throw money around as good as any pack of vote-hunting leftwingers, while strangling the economy with feelgood environmental regulation.
Opel doesn’t own its factories (GM does) or intellectual property
What the hell is Adam Opel GmbH then?
“What the hell is Adam Opel GmbH then?”
As of today, it’s a shell company, which sole purpose is to scam the european governments into paying for GM:s losses.
The new (and improved) Opel will be 100% German and will promptly march on Belgium – sorry I could not resist that one. My bad.
Already done. The Astras were made in Ghent (a city approximatively 40 kms on the NE of Brussels)
“German Interior Minister Wolfgang Schaeuble said after meeting with Opel leaders. “The public perception is that insolvency is associated with going bust or bankruptcy, but that is wrong. We must grasp that to survive such a crisis, modern insolvency rules are a better solution than the state taking a stake.”
Since corporate fiscal years usually end on March 31, I propose we make Minister Wolfgang Schaeuble TTAC’s man of the year.
Maybe we can publish an editorial in German and forward it to the related parties as an appreciation.