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We and most of the European press had reported that GM Europe would give up their strange headquarters in Zurich, Switzerland, and move the whole shebang to Rüsselsheim, Germany, where Opel resides. Not quite, said an Opel spokesperson to Germany’s Autohaus. From Rüsselheim “all functions of Opel and Vauxhall will be directed,” said Andfreas Kroemer of Opel. In Zurich remains the headquarters of Chevrolet Europe.
And what about GM Europe?
“There will be no more GM Europe,” said Opel labor leader Klaus Franz. “Opel and Chevrolet will be separated. We won’t need a superstructure.”
11 Comments on “GM Europe Goes Poof...”
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GM, which is bankrupt, has offices for big shots in high-rent Switzerland.
Wal-Mart, which is prosperous, has its HQ in low-rent Arkansas in a building that looks like a SuperCenter.
A perfect example on why Wal-Mart is profitable and why GM went bankrupt.
Zurich give GM’s executives better access to their off-shore bank accounts.
Twotone
Call me crazy, but I think that this is a good thing for GM, the no GM Europe portion. I think this will give more freedom for Opel to do what it wants to do.
Zurich sounds more upscale than Russelsheim. Wait til Big Ed sees the rent on the Zurich digs.
My gut reaction is that GM is setting itself up to self compete/cannibalize it’s own sales…again. Chevy vs. Opel who wins? Ford, PSA, Renault, VW…
Bunter
While the price point isn’t too different, Chevy is definitely a value brand and Opel is not. Besides, Chevy’s market is mainly eastern Europe and Opel’s is western Europe. I don’t think that this is that big a deal. Besides, there are many dealers in western Europe that have both Chevy and Opel.
Would agree with Steven on being a good thing and a politically driven move at that. One of the chief complaints from Germany was that GM had starved Opel to death (possibly correct) and therefore would only give funding if seperated. By dissolving GME and giving Opel its corporate independence GM is one step closer to alleving those concerns (state, management and union) and securing funding. I think that chevy in europe is meant to compete with the likes of dacia, skoda, etc. while leaving Opel to deal with western europe (which again is probably smart).
hi rnc, I’m sure the intent will be to keep chevy and Opel in different markets. In pratice the separate groups will do whatever they think they need to do to survive/thrive. When a segment of the market is hot and it’s where they are not will they stay out? This is not a matter, to my eyes, of the gap between Toy/Lexus or Chevy/Caddy. There is going to be a lot of natural overlap in price point/market. Marketers like to think people go out looking for one thing and buy that type of thing.
Shoot, I work with a guy who went out looking for a sport coupe and came home with a full size PU and another couple that was thinking PU and bought a Sebring convertible.
Fearless prediction: THese two will cut into each others market at the first opportunity and the marketing wonks will insist they are clearly separated.
My take anyway.
BUnter
@ Bunter1
I think that your examples of people looking for something and coming back for something else entirely is interesting, but also making this case. In western Europe, there are many Opel dealers that also carry Chevy. What they have found, is that when Chevy came in, it also boosted Opel sales. It could very well be that Chevy buyers could spend a bit more and walk away with an Opel.
But not a chevy. My point is that they will compete and cannibalize, IMO, much like Chevy and Pontiac in the US.
Cheerio,
BUnter