Opel’s union boss and chief thorn-in-the-side for GM’s attempt at regaining control of its European division, Klaus Franz, recently met with CEO Fritz Henderson and is telling German media that “Henderson agrees that Opel should be led back to its traditional strengths in Europe, with a high level of independence and autonomy within the GM organization.” But Franz is looking for more than kind words from Fritz, namely a future Opel share offering. “This way, GM can prove that it’s serious about Opel’s independence,” Franz tells RTL. Franz and Opel’s employees want a complete business plan along the lines of the one they’ve been negotiating for the past year and a half. Meanwhile, GM has also said that it will pay back the remaining €600m ($900m) worth of German government’s bridge loans by the end of the month. Between the Moody’s report that GM needs $8.5b to turn Opel around and the division’s continued desire for independence, a solution to the situation won’t be easy or cheap. It may be in GM’s strategic interests to keep Opel under its wing, but to what extent and at what cost?
The DetN, the unofficial in-house organ of GM, reports (without flinching) that GM officials “still hope to negotiate an agreement with Magna and Russian automaker GAZ. A source familiar with the situation said GM has already contacted Sberbank.” Exactly. The same bank that is owned by oligarch Oleg Deripaska who had his US visa canceled amidst allegations of money laundering and organized crime. And who had to cut a deal with the FBI to be allowed back into the country. And who, according to the New York Times, “has repeatedly denied media reports that he had acquired a major stake in U.S. car maker GM.” Read More >
If the managers at Opel are feeling a little queasy today, this should have them running for the Alka Seltzer (or whatever Germans use). As if to throw (more) gas on the conflagration raging at Opel, Brent Dewar, vice president of Chevrolet, announced at the Reuters Autos Summit in Detroit that GM is targeting sales of 1 million Deawoo-Chevrolets in Europe, double the 500,000 vehicles sold in 2008. Read More >
Did we mention that China’s Brilliance hasn’t been doing so, well, brilliantly? The joint venture partner of BMW, and maker of supposedly homegrown Ersatz-BMWs (the sight of which makes any BMW engineer reach for a bottle of Jägermeister) had racked up losses to the tune of 9b Chinese Yuan ($1.3b) in the first half of the year. And now, its European importer went kaputt. HSO Imports, located in tax-friendly Luxemburg, declared insolvency. To the tune of silent, but audible “hipp-hipp, hurrah!” amongst Germany’s automakers. Break out the bubbly, another attempted Chinese invasion has been repelled. Read More >
Frank Weber, the man in charge of GM’s electric vehicle line, will be leaving GM for a senior leadership at the soon-to-be-sold (or not?) Opel. Weber previously worked on Opel’s development of GM’s global mid-size (Epsilon II) vehicle line, before becoming the head of GM’s electric vehicle development program in March 2007. Weber is the second senior executive in GM’s global electric, hybrid and battery development organization to leave in a month, following Bob Kruse’s departure at the end of September. And as with Kruse’s exit, the sound bites coming out of GM seek to portray the loss as no big deal. “There is a huge difference in the Volt program from when I came here,” Weber tells Bloomberg. “The entire organization has inhaled what we do here.” In reality though, Weber’s defection makes the introduction of the Opel Ampera (as the Volt will be known in Europe) even more difficult than it was already shaping out to be.
GM’s sale of Opel to Magna/Sberbank is being held up by the European Union, which is looking into whether the German government unfairly favored Magna’s bid. But while the interregnum plays out (the EU will decide by November 27th), GM has plenty of time to develop a case of seller’s remorse. After all, GM’s VP for Global Engineering Mark Reuss recently told Autoline After Hours that Opel is completely integrated into GM’s global product development, and that the relationship “won’t change.” Does that, as Business Week’s David Welch asked, mean GM will keep all of Opel’s development capacity while reducing loss exposure to 35 percent? Reuss had to change the subject, but it’s obviously not the case. With Daewoo under fire, GM would clearly prefer to keep Opel’s development capacity integrated, and keep its intellectual property out of the hands of Russian automakers. And with German newspapers reporting that GM’s board is considering a “plan B” to keep Opel within the GM fold, Opel’s workers are threatening to strike.
Say what you want about the Prius (and no doubt you will) but it is a car that ushered in a new era of automotive history. It made saving fuel and being “green” trendy. When automotive history is written, the Toyota Prius will be along side cars like the Ford Model-T, The Citroen DS, the Jaguar E-Type and Audi Quattro. But now other car companies are fighting back. Toyota has the Prius, Ford has the Fusion hybrid, GM has the Volt and Volkswagen has the….Golf?
Channel 4 reports that Volkswagen are launching the Golf Bluemotion and it wants your attention. For those who like figures (and I don’t mean the Jill Wagner type) here are some salient points for you to chew over:
Well, we’ve been here before. A while back we’d heard that an Alfa 169-branded, LX-platformed sedan would be built at Brampton for the US market, with a rumored $62k price point. That story seemed a bit iffy at the time, although it wouldn’t surprise us to hear it announced officially at Chrysler’s forthcoming five-year plan announcement. Especially now that we’re hearing more rumblings that Fiat will borrow the LX platform for European-market sedans to be built at the former Carozzeria Bertone plant in Turin. Automotive News [sub] reports a Lancia Thesis replacement and possibly even a entry-level Maserati will be built using Chrysler’s long-running RWD platform. Fiat has been looking for a RWD platform for some time, having planned on using Cadillac’s Sigma platform, and when things got nasty with GM, Fiat went sniffing around the Jag XF platform. Now Fiat has its rear-drive underpinnings, and Chrysler’s new “Pentastar” V6 to play with… but will Maserati settle for less than a V8? And will the American market actually be getting an Alfa-branded LX? TTAC will be on-hand for Chrysler’s five-year product plan announcement, and will report the definitive word on November 4th.
Swedish daily Dagens Industri claims to have their hands on Koenigsegg Group’s secret market-plan for Saab. The one they used to secure a 600 million Euro loan from European Investment Bank. And they are aiming…upmarket! The ultimate goal is, by 2016, to establish a true luxury brand, and by then have such exclusive and expensive cars that an annual sale of 65.000 cars will suffice (by doubling the average prices).
OK, so we pulled the Cruze wagon picture because it was a photoshopped fake [Hat Tip to Jalopnik for catching it]. So here’s a different yellow hatchback that also won’t be coming to the American market (thanks for nothing, Roger Penske and Carlos Ghosn). It’s a RenaultSport Mégane, and according to Autobild it’s a two-liter turbo four hot hatch with 250 horsepower. To be perfectly honest though, we’re not entirely sure the picture hasn’t been run through the old shop of photo.
Auto Motor und Sport‘s Erlkönig prototype hunters tracked down Audi’s smallest car yet, testing before a 2010 European launch. Pricing and currency issues are blamed for the A1’s Euro-restricted habitat, and with a base price of €16-18k for a 1.2 liter engine, it’s no surprise that it won’t show up stateside. The possible 200 hp, AWD, seven-speed DSG S1 version sounds worth a grey market import, but at an estimated $36k, you’d have to be pretty fanatical about hot hatches to even think about it. And good luck finding a VW dealer in America who can work on your twincharger engine.
European new car sales continue on their path of recovery. However, as the Abwrackprämien-fuel tank ran dry in Europe’s growth engine Germany, the party may come to a halt in October.
In September, European passenger car registrations increased by 6.3 percent, compared to September 2008. A total of 1,388,136 new cars were registered in all of Europe last month, the European Automobile Manufacturers Association (ACEA) reports today. Nine months into the year, registrations of new cars in all of Europe are still 6.6 percent lower than during the same period of 2008. Read More >
A touching story of auto-industry love may be developing between Mitsubishi and PSA, reports All Cars Electric, citing Wards [sub] and French newspaper reports. It seems the French concern was deeply smitten with Mitsubishi’s $45k MiEV electric car and pursued the option for Citroen and Peugeot-branded versions. And apparently, the more PSA learned about the Japanese company, the more they liked. Did hands brush awkwardly over battery capacity charts, causing a thrilling moment of heart-fluttering eye contact? Executives did share the stage at the announcement of the EV-sharing deal, and now sources close to the deal say the new-found relationship could be snowballing towards a full-on R&D cost-sharing alliance.
The Wall Street Journal reports GM could conclude its Opel division sale by as early as Thursday, after Fritz Henderson and German officials both signaled that talks were nearing an end. Magna and its backer Sberbank will put down €500m ($740m) for 55 percent of Opel, while Opel’s labor unions have agreed to €265m worth of cost savings. The German government aid package said to total €4.5b through 2015 has yet to be finalized, but this apparently will not affect the deal. The major issue still under negotiation is the potential job loss across Europe, as the EU has already warned Germany that it my not “buy” jobs with its aid package at the expense of other EU nations. Which means Spain, Belgium, Britain and Poland still have to play “shuffle the jobs.” Magna has said that Opel could shed as many as 10,500 jobs, including 4,000 in Germany. On the upside Opel’s unions are getting ten percent of New Opel, although their decision making power is another of the issues still being negotiated. GM fought long and hard to prevent the sale of Opel to Magna/Sberbank, but with the major obstacles to the deal overcome there’s little left to do but grin and sign the papers. And then sit back and watch as Opel’s technology is leveraged to create a modern (and heavily subsidized) Russian auto industry which will challenge Chevy’s position in the Eastern European markets.
Automotive News [sub] reports that the promotion of Lancia CEO Olivier Francois to Chrysler brand boss heralds a closer alignment of the two brands in the European market. According to AN’s Fiat source, Chrysler and Lancia will share products and distribution going forward, not mention a luxury mandate that has yet to convince the wider market. The association might lend a certain amount of panache to the Chrysler brand, which its former CEO Peter Fong has said should aspire to “a notch above Cadillac.” If nothing else, Chrysler will probably get a version of the next Lancia Ypsilon city car. And Lancia? A new Thesis flagship based on Chrysler’s LX platform, and “a car derived from the Sebring’s successor,” according to AN. In other words, a Fiat. Nothing about these product-sharing plans sound particularly exciting, considering they hardly get Chrysler and Lancia away from their traditions of peddling upscale versions of pedestrian grocery-getters. But Messr. Francois has kept Lancia from going the way of Oldsmobile through his Gallic brand of sultry marketing, like the Carla Bruni spot above (by the way, is that a Chrysler limo?). The hope is that the Francois panache can similarly rescue Chrysler’s efforts, but that’s a tall order for a brand with basically no competitive product. Meanwhile, does Europe need another brand of luxe Fiats?
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