Never a dull moment with Opel. At least their PR machine is working. As for their brains… Anyway, yesterday, we mentioned that GM Europe Chief, Carl-Peter Forster, had sounded a bit depressed when he said there were “interested parties but no formal talks” in regards to a partial sale of Opel. Today, we mentioned that Opel is getting rebuffs by the number, get losts by the score. Now, as Friday the thirteenth has ended, GM acts like nothing ever happened. Im Gegenteil! The party is just beginning! Are you, or have you ever been an interested investor? Does GM have a deal for you!
To a perplexed public, General Motors announced today that it is– again– planning to seek third-party investors for Opel/Vauxhall, the Financial Times reports. For that surprising purpose, GM is preparing a sales prospectus, and plans to approach “possible interested parties” in buying Opel/Vauxhall. Excuse me?
Apparently, Carl-Peter Forster must have found some medication that helped him forget what he had said the days before. He also must not have received GM COO Fritz Henderson’s memo in which he said last week that there were few potential investors lining up to buy Opel/Vauxhall. The few that had, already expressed their most sincere “no thanks” (or rather “bu yao”) the other day.
Coincidentally, this piece of denial coincides with a meeting of ministers from countries where Opel has plants. The ministers (politics-based, not faith-based) are meeting in Brussels to seek a common position on state funding. As in should we, or should we not. Forster has something to say about that:
“Through our discussions with German officials, we have determined that finding an outside investor that has the majority of its investment backed by the government is the most promising and innovative path to take,” Forster opined. “This would mean the taxpayer has no immediate contribution to the restructuring – the government would only provide guarantees for the majority of the investment made by a third party.”
Yes, and pigs will fly.
So the latest is that Opel is in such bad shape that GM only can find an investor if the government pretty much gives the investor the money needed to invest? As a loan, of course. Which will be paid back. Cross my heart.
This sure beats the supposed Chrysler/Fiat deal for no money. Now there’s a deal where you get paid to invest? And GM still has a hard time to find suitors?
How will they source future vehicles from GM Europe (Opel) when they sell it off?
Something about this plan doesn’t seem like it will work.
I’ve got ten bucks. I just want the badge. Lightning bolts are cool. OK, I’ll throw in twenty.
Gotta feel something for Carl-Peter, Opel/Vauxhall have some decent cars (Astra, Insignia), but they aren’t getting the benefits they should and that Ford got with the Mondeo and Fiesta. Of course, the news from the US doesn’t help their image with continious reference to the GM bailout, and “Vauxhall in crisis”.
Wonder if he passed his cv (resume) to VW, Fiat and Ford when he was in Geneva?
@Dave:
Carl-Peter is an experienced, ex BMW man, i honestly don’t think he would be out of a job for long. However, we can be fairly certain that he is in an impossible position now, having to stick to the party line (GM) for now to keep the job.
The rumor in the european forums is that (GME workers council chief) Klaus Franz is the one voicing the true intentions of the board as he cannot be fired by GM.
Will Opel live to fight another day? I think yes, for the very simple reason that (German Chancellor) Angela Merkel has scheduled a visit to Opel’s main factory in Rüsselsheim for March 31.
Will the rescue work? Who knows. Opel seems to have at least something the rest of GM utterly lacks: an extremely motivated workforce that is willing to go to great lengths to make it work. Stranger things have happened.
Message to Carl-Peter: Hire Holger Härter at all costs from Porsche to manage the money if you get your bailout.
Maybe Porsche is a buyer here.
GM is preparing a sales prospectus, and plans to approach “possible interested parties” in buying Opel/Vauxhall.
Billy Mays here for General Motors! How often have you wanted to ride around in a private jet, get a bonus even though you failed to do your job right, and take in some sweet free government money? Now, with the help of the good folks at General Motors, you too can participate in the American Dream for just three easy payments of $19,999,999. But wait, if you call right now, GM will throw in a Military Inspired SUV company for no extra charge. Call now, operators and bankruptcy attorneys are standing by.
Bertel,
Having read Forster’s blog, this seems like a pretty elegant political solution, if you look deeper. If it wins independence for Opel and creates a company that is substantially walled off from the financial issues in the US, that seems like a good thing. Second, doesn’t this mean the government can support without actually having to write a check? If Opel was actually profitable just six months ago, the ability for an investor to make a substantial return would almost seem risk-free. I don’t know about denial…but this seems like it could work.
jerome10- You hit the bulls`s eye!
Because Gm plans to engineer their own platforms after spinning off Opel. hahahahaha! Just kidding!
i`d rather believe aliens landing with their saucers in Cobo hall than Gm doing their own engineering.
My industry friends in Germany (or what’s left of them) are convinced (or they hope) that Opel will be euthanized. There is too much capacity in Europe, and that’s one way to reduce it.
Currently, Germany is looking for any excuse to delay a decision. Once all excuses are used up, the big decision has to be made: What costs more, shut Opel down or save it? To come to that decision, it can take years.
@Bertel:
(VW CEO) Martin Winterkorn seems particularly enthusiastic with the prospect of Opel being euthanized.