Well into the first decade of the new millennium, Changchun, China, was Volkswagen’s Siberia. When someone was transferred to the frigid city in Northern China, the others inevitably asked: “What did you do?”
It looks like Opel is quickly becoming GM’s Siberia, and people rather desert than going. (Read More…)
Today’s Chart comes from finance blog Zero Hedge, which has taken a periodic interest in General Motors channel stuffing endeavors. While we don’t normally report on stock prices here at TTAC, this one is worth mentioning.
“Should Opel, Chevy coexist in Europe?” This is what Automotive News [sub] asks today without offering a real answer. Let’s have a look. Then, cast your vote. (Read More…)
GM has shut down all of its eight Brazilian production units near Sao Paulo “to protect the physical integrity of its workers,” the Washington Post says. It appears to be an euphemism that refers to union violence. Reuters has it slightly different and says that production has been shut down “for the day at one of its factories” in order to “not expose workers to possible incitement and provocation.” (Read More…)
The closing of the Oshawa Consolidated Line supposedly had GM in the bailout doghouse – the company was supposed to maintain a certain level of production in Canada according to the terms of their bailout package. As far as we know, GM hasn’t replenished that yet, but they are throwing the Canadian federal and Ontario governments a bone by investing an undisclosed nine-figure sum into R&D at Oshawa.
While all eyes are on GM’s hemorrhaging Opel, Ford is said to be even more affected by the European contagion. Ford could have to close at least one plant in Europe, analysts say, with Southampton, England, and Genk, Belgium, in the cross-hairs. (Read More…)
General Motors pensioners should not worry about their underfunded pension plan. Its assets will be in safe hands. Those of the Chinese government. The Chinese government has agreed to buy large chunks of it, says Financial Times. According to the paper, China’s “State Administration of Foreign Exchange, which manages China’s more than $3 trillion in foreign exchange reserves, will pay $1.5bn-$2bn for GM’s positions in blue chip private equity funds.” (Read More…)
Former Wall Street banker turned GM CFO Dan Ammann put the fear of a higher being into Reuters’ Detroit correspondent Ben Klayman. To drive home the point that bean counters can be car guys too, Ammann raced his gray-metallic Corvette Z06 around GM’s Michigan test track – with a nauseated Klayman in the passenger’s seat. (Read More…)
How would you feel if you start your new job and people greet you by speculating who will replace you? This is how Thomas Sedran must feel. Only hours after he has been made the new interim CEO of Opel, German media speculates who will be next in his ejection seat in Rüsselsheim. The roster of likely candidates is not encouraging. (Read More…)
Brazilians are unhappy with GM. GM is cutting capacity and jobs at a Brazilian plant. This made the Brazilian government unhappy, because it had cut taxes on domestically made cars, in exchange for manufacturers maintaining the size of their workforce. It also made unions unhappy. They voiced their displeasure on Monday by going on strike, Reuters says. (Read More…)
The summary execution of Opel chief Karl-Friedrich Stracke, and the mess this has created, is front page material in the German press today. The fingers point in the direction of Detroit. Detroit has no clear strategy and changes directions like soiled underwear. The fingers also point at an impulsive Dan Akerson who is out of his depth.
According to Germany’s Handelsblatt, the firing of Opel chief Karl-Friedrich Stracke went down like this: (Read More…)
Opel’s stand-in boss Stephen Girsky demands changes from his workforce. “Our successful revitalization demands from all of us that we accept to do business differently than before, and that we do it quickly,” Girsky wrote in an email to staff, cited by Germany’s BILD Zeitung. How different, remains unsaid. Workers and unions expect a fight and gear up for one. Opel is running out of money. Bankruptcy rears its head. (Read More…)
If you’re shopping for a compact American crossover, Chevy’s Equinox is likely on your list. If however you’re looking to rent a small crossover, the Chevrolet Captiva Sport is probably what you’ll get for $29.95 a day from Hertz. While you’re bound to see them on the streets, you can’t buy them new unless you’re a fleet customer. That’s because the Captiva is designed to do two things: keep fleet sales of GM’s other CUVs low and continue to amortize the cost of Americanizing the Opel Antara. Yep, that’s right, under the bow tie, the Captiva Sport is none-other than the 2008-2010 Saturn VUE, aka the Opel Antata, Holden Captiva and Dawewoo Winstorm MaXX. We spent a week in a Hertz rental to find out if Chevy’s rental soft-roader should be on your used CUV shopping list.
After putting Opel CEO Stracke abruptly out to pasture, one would think that his (allegedly interim) successor Steve Girsky has a new plan to rescue Opel and to spare GM shareholders further losses. Not so. The new man will keep the old plan. “GM fully supports the current plan to strengthen Opel and improve its operational competitiveness,” a spokesman for Opel told Reuters. (Read More…)
Volkswagen has published group sales for June and the first six months, and they are better than those of most other European makers. Global deliveries for the half year are up 8.9 percent to 4.45 million. June looks surprisingly good with sales up 11 percent to 798,500. Nevertheless, Volkswagen looks like no threat to the leading positions of Toyota and GM. (Read More…)
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