No big surprises in the excruciatingly slow bidding for who will finally take over Opel with the blessing and money of the German government. AFP reports that China’s BAIC has been kicked out of the sluggish race. The field of suitors has been whittled down to Magna and RHJ.

Officially, the race is open and fair. However, it is an open secret that GM favors RHJ, while the German government roots for Magna. GM hopes to be able to buy back a washed, rinsed, and refinanced Opel from a compliant RHJ. Berlin hopes to build a Ribbentropian German/Russian automotive power pact. Says AFP: (Read More…)

The supervisory board of Volkswagen met in Stuttgart today, a symbolic act that documented the occupation of formerly enemy territory. The board of Porsche had pulled an all-nighter before and prepared everything for the surrender: A capital increase was approved, facilitating the entry of another party. A deal with Qatar was sanctioned. The heads of Wiedeking and Härter were presented to the victors on a titanium platter.
(Read More…)

The Porsche board kept busy all night. Porsche dismissed CEO Wendelin Wiedeking and CFO Holger Härter with immediate effect, Reuters reports. They were kicked out, wearing parachutes worth €50 million ($71million) for Wiedeking and €12.5 million ($18 million) for Härter. That was way below the sums discussed previously. (Read More…)

In a surprise announcement, Porsche Automobil Holding SE said early Thursday morning that its supervisory board approved a capital increase of at least €5 billion as part of a move toward forging a combined company with Volkswagen AG,  Automobilwoche [sub] reports.
(Read More…)

Piech has a new enemy: The taxman. Volkswagen’s planned takeover of Porsche could be a taxable event to the tune of €3B, writes the Süddeutsche Zeitung.

As the derivative-wielding duo Wiedeking and Härter are surely aware of, there are ways to circumvent this nasty detail. VW’s CFO reportedly has shown the ways. However, this needs cooperation on both sides. The Porsche side seems to be uncooperative and happy about the tax issues. If a solution can’t be found, then “the deal is off” the Süddeutsche quotes a source, notably sitting on the Porsche board. A Porsche speaker also said that “there is a problem.” Apparently, a welcome one.

(Read More…)

Sorry, go back to bed: No Autobiography of BS © this time. As you read this, BS sits on a plane heading for Europe where he will conduct a week of business. Next Sunday is also unlikely as I’m on a plane back. After that . . . he’s baaaaaaaaack!

On Monday, July 20, 2009, GM Europe accepts the last and final bids for Opel. Really. Definitely. They mean it. GM will evaluate the bids, choose a favorite, and then go on an arduous show-and-tell tour: Germany’s central government needs to be convinced, the states where Opel has plants need to be convinced, European countries where Opel has plants need to be convinced, the EU Commission needs to give its approval. The US government needs to be consulted. And then it’s up to the trustees to say “Ja” or “Nein.” So what will it be?

(Read More…)

After every paper in Germany, and soon thereafter most on the globe had reported the ouster of Wendelin Wiedeking as Porsche CEO, his chairman Wolfgang Porsche belatedly came to his rescue: Friday evening, Wolfgang Porsche, chairman of the Porsche supervisory board, said that this is all wrong. In Germany’s fat weekend-editions, the denial is mentioned only in passing. Nobody seems to buy it.

What makes headlines is that Volkswagen might be first to fire Wiedeking. As representative of the 51 percent Porsche owns in VW, Wiedeking sits on VW’s supervisory board. It will meet on July 23, coincidentally when the Porsche supervisory board meets, and likewise coincidentally, both boards meet in Stuttgart. That makes it easier for two people: Ferdinand Piech is the chairman of the Volkswagen board, he also sits on the Porsche board. Wiedeking needs to report to his Porsche board, but he also needs to attend the Volkswagen board meeting.

It may be his last meeting.

(Read More…)

Der Spiegel has it on good authority that Porsche’s Wendelin Wiedeking is history. The Porsche/Piech families sent Wendy packing. A new successor is already found: Michael Macht. He is director of production, and has a good reputation in the business—for producing cars. This indicates in which direction the board meeting on July 23 will go.

(Read More…)

Last night, make that early in the morning here in Beijing, I received a pleasant phone call. The lady identified herself as working for a large and reputable German newspaper. We exchanged German pleasantries, as much as they exist. Then she said: “You wrote about RHJ, Ripplewood and Opel? Do you know anything about Tim Collins’ connections?” I confessed that I know of a recording artist named Collins, but his first name is Phil.

“TIM Collins, the owner of Ripplewood,” she said. “Sorry, never met the guy” was my answer. She says: “Ok, maybe I have to dig around his old compatriots myself.” With these words, she bid me ta-ta.

Are you the type who is worried of black helicopters? The New World Order? The Trilateral Commission? The Bilderbergers? Then read on. If you think conspiracies are bunk, skip to the next post.

Want to handicap the bidding war for Opel (and German bailout money)? Then be careful in your choice of news sources.

Germany’s mass-market tabloid BILD today declares that “RHJ is in the lead” for Opel. Magna has only “slim chances” to win. BILD‘s supposed sources are in Berlin’s Ministry of Economics.

Also today, the Wall Street Journal writes: “Germany’s government sent a message to General Motors Co. on Wednesday: If GM sells its European car business to anyone other than Magna International Inc., then Germany might withdraw its offer of state aid.”

Wie bitte? (Read More…)

China’s Geely is expected to make a formal offer for Volvo within the next few days, if the Wall Street Journal is not mistaken. The offer “is anticipated to be around $2 billion.”

Geely is one of China’s top 10 passenger-car brands, it is also one of the China’s few independent companies, building cars without foreign joint venture partners. Industry watchers believe that Geely will export its models to the US or Europe within three to five years. To do this successfully, owning a Western brand with Western technology and a stable of safety-tested and homologated cars is indispensable. Geely is keenly aware of this. Says the WSJ:
(Read More…)

As those who have followed the Porsche-Piech soaps know, there will be an extraordinary meeting of the Porsche supervisory board next week on July 23. On the agenda: “Will we be saved by the Sheik of Qatar, or by the Sheik of Wolfsburg, or all of the above?”  Any guesses?
(Read More…)

Volkswagen’s proving grounds in Ehra-Lessien, north of Wolfsburg, is not just deadly for ducks. The secretive site turned into the scene of a bizarre accident. A driver crashes, survives, only to be killed by a colleague. The second driver is fighting for his life, Flensburg Online reports.
(Read More…)

For the first time in fourteen months, European car buyers registered more cars than in the same month the previous year, the European Auto Manufacturer Association ACEA reports. For the month of June, Europe (as defined by the ACEA) records a modest growth of 2.4 percent, mostly “carried by the effects of fleet renewal schemes in more than 10 EU Member States.”

“Fleet renewal schemes” is a EUphemism for cash for clunkers.

What is interesting is that June ’08 was still strong. Any growth recorded against a strong month of the previous year is a good sign. As this graph shows, the car-nage in Europe begun in September ’08, and it was downhill from there. Expect more “growth” news from Europe for the following months, as a cautiously recovering market compares with a disastrous fall and winter of 2008. (Ignore August. All of Europe is on vacation in August, and next to nobody buys any cars while on vacation.) Country by country, it’s still a mixed bag.
(Read More…)