If you are anxious to hear what Opel is going to do to stop the bleeding of money (just in case you are holding GM stock,) then you need a lot of patience. GM Europe CEO Karl-Friedrich Stracke thinks he might have a plan within two to three months. He might have a plan. Setting the plan in motion may take longer. (Read More…)

It hasn’t been much of a secret that Opel is working on a small car, called the Junior, to take on BMW’s Mini, or Fiat’s 500. As a matter of fact, Opel had been working on the Junior since 1982. Way back when, the interior of the Junior had been designed by a new arrival in Rüsselsheim, a freshly graduated Chris Bangle. People who expected to see a Junior in Geneva were disappointed. Instead,”General Motors will launch its new small car, the Junior, at the Paris show next autumn,” just-auto was told in Geneva.

The bigger news: The Junior “will be strictly for Europe and unable to challenge the global success of the Mini, or take on the Fiat 500 in America, engineering head Rita Forst admitted” to just-auto.

The interesting part is the alleged why.

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On the back of last year’s win for the Nissan Leaf, the Chevrolet Volt and Vauxhall/Opel Ampera has won the 2012 European Car of the Year award, beating out the Citroen DS5, Fiat Panda, Ford Focus, Range Rover Evoque, Toyota Yaris and the Volkswagen Up!

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Hear that chafing sound? It is analysts scratching their heads. They wonder why in the world would GM buy 7 percent of France’s PSA Peugeot Citroen. Bloomberg says this is about to happen. Neither GM nor PSA wants to confirm the deal. However, Bloomberg already has intricate details of the planned transaction, someone seems to be talking on deep dark background. Sounds like the odd couple is about to do it.

The question remains: Why? (Read More…)

Opel Chief Karl-Friedrich Stracke told reporters that an agreement with unions about a fix of money-losing Opel is a while away. “I expect this not to happen in a month or so, rather than in a couple of months, that’s at least how I see the timetable,” Stracke told Reuters.

Analysts think that Stracke is an optimist, and that restructuring Opel won’t come cheap. The guesstimate is more than $1 billion, and the payback will take a while. (Read More…)

When GM will announce 4^th quarter and year-end earnings tomorrow, a lot of fingers will be pointed at Opel, and on GM CEO Dan Akerson who decided to keep the hemorrhaging unit instead of selling it off to Magna and the Russians. Bloomberg expects that tomorrow’s quarterly profit will be “GM’s lowest since it emerged from bankruptcy in 2009,” despite record sales in the U.S. and China. According to Bloomberg, (Read More…)

Even at Germany’s IG Metall metal workers union the daily BILD Zeitung was put aside today to make room for the fancy Wall Street Journal. The paper claims to have talked to “a GM official,” who thinks that all hell is about to break loose at Opel in Germany. (Read More…)

By the mid-1990s, The General’s top thinkers had finally figured out that 90-year-olds don’t have many car-buying years left in them, which meant that Cadillac had to convince some sub-nonagenarians to buy their cars. Naturally, the focus of this effort would be more on marketing than on the vehicles themselves, but even Cadillac’s most PowerPoint-adept marketing wizards knew that they couldn’t slap Day-Glo orange “Brougham d’Elegance EXTRËËMË ËDITION” badges on the Eldorado ETC, hire Napalm Death as celebrity spokesmen, and expect hip/well-heeled 30-somethings to ditch their imports. No, a different kind of Cadillac would be needed. Hey, how about slapping some Cadillac emblems on the Opel Omega? Problem solved! (Read More…)

Ahead of the Geneva Auto Show, we have our first look at the Opel/Vauxhall Mokka, which is known here as the Buick Encore. The Euro twins get a stop-start system across the board, and two extra engine options. A naturally aspirated 1.6L gasoline engine making 113 horsepower, or a 1.7L diesel making 128 horsepower and 221 lb-ft of torque. Looks better dressed down, no?

When we heard from Reuters about GM’s possible plan to shift production from its South Korean former Daewoo plants to Europe, we didn’t think that would be highly appreciated in South Korea.  After duly reporting that there could be a deal afoot to mollify the German and European steelworkers union with jobs taken away from South Korea, we opined: Let’s see what the militant South Korean unions have to say about that.”

We did not have to wait long. The unions in South Korea already threaten war, and when they say war, they mean war. (Read More…)

When thinking about creating cost efficiencies, moving jobs to Asia usually comes to mind. GM has a different plan to bring profitability back to its hemorrhaging Opel unit. GM is considering bringing Chevrolet production from its Korean plants to Europe. In exchange for delivering jobs, GM expects concessions from the unions that would clear the way for a major cost-cutting operation necessary to stop the bleeding and to save the German patient from otherwise certain death. This is at the heart of a detailed report just filed by Reuters correspondents Christiaan Hetzner in Frankfurt and Ben Klayman in Detroit. (Read More…)

It wasn’t our intention to inundate you with Buick stories, but sometimes the improbable occurs. Buick has been slowly revealing their new Encore crossover via their Facebook page, and we’ve now been treated to 3 out of 4 photos – enough to discern what the vehicle really looks like (pretty close to what Ed’s photo revealed).

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Ever since Steve Girsky an his “merry band of hatchet men” touched down in Rüsselsheim, Bertel has been warning that GM’s European division was about to embark on a serious cutting binge. But our worst fears, namely that Opel could go away entirely, have yet to be realized. Instead it seems that self-destructive mutilation will be attempted first, in order to stem the gushing red ink at Opel where at least €1b in losses are expected next year. Automotive News Europe [sub] reports that the first round of cuts will hit Opel’s Internationalen Technischen Entwicklungszentrum (ITEZ, “International Technical Development Center), as an IG Metall union document foresees some 1,420 product development position cuts (from a staff of some 6,000).

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Allegedly, GM wants to replace Opel and Vauxhall with Chevrolet in Europe, and turn the bow tie into a true global brand. Apparently, it wants to do this with a severely pruned-down dealer network. Chevy dealers in Germany watch every courier coming through the door with trepidation: Every fifth Chevy dealer in Germany will be handed a letter that tells him that his contract is being terminated, says Germany’s kfz-Betrieb.

As reason, insufficient sales are given. Uwe Heyman, a lawyer who manages the council of Opel and Chevrolet dealers in Germany, thinks the reason is likewise insufficient: (Read More…)

Without Opel, GM might not be the world’s largest automaker. But it would be a highly profitable automaker. Opel will cost GM approximately € 1 billion ($1.3 billion) in the coming year and will miss its restructuring plan. Reason for the shortfall: Opel will sell only 1.4 million cars next year, 100,000 less than budgeted. How do we know this? We don’t, but it is in an internal forecast of Opel. The document somehow came into the hands of the German magazine Capital. (Read More…)