The Volt’s battery woes are having an effect on its European sibling. Automotive News [sub] reports that Opel/Vauxhall will delay delivery of the Volt’s sister-model Ampera, while investigations by U.S. authorities into battery fires following government crash tests of the Volt continue. An Opel spokesman told AN: (Read More…)
Many years ago, an old school Volkswagen exec said to me: “If I want to have visions, I simply drink a few bottles more.”
How things have changed. Nowadays, if you want to be a CEO, you must have a vision. Winterkorn’s vision is world domination by 2018. His colleague Karl-Friedrich Stracke also has a brand new vision. According to Germany’s Focus Magazin, Stracke said at a meeting for the upper management: (Read More…)
For no immediately obvious reason, Germany’s Frankfurter Allgemeine Zeitung has a long article today, which says that GM is running out of patience fast with its money-hemorrhaging Opel unit. The paper predicts new negotiations (read firings and plant closures) with the unions – “or worse.” (Read good riddance Opel.) The sound of rattling sabers is all over the article. (Read More…)
Reuters reporter Ben Klayman, part of their stellar Detroit team, assisted by Christiaan Hetzner in Frankfurt, did a great piece about the grim options that await Steve Girsky and his merry band of hatchet men when they go over to Europe to whip Opel in shape. It could actually be the end of Opel instead of a glorious future, the report says.
“Options for restructuring Opel range from bad to worse and could include a form of bankruptcy, analysts and bankers say. Costs will have to be slashed further, steps that could include politically charged job cuts and plant closures in Europe. Girsky, who was named chairman of Opel’s supervisory board on Monday, could look for new partners for Opel to share costs, and even return to the idea of selling the brand once it has been repaired, analysts said.”
Adam Jonas, analyst at Morgan Stanley, Girsky’s former employer, says it best:
“You can’t say the words ‘all options are on the table, we rule out nothing’ unless there’s something fundamentally changing.” (Read More…)
Opel workers and managers are deeply worried: It’s not just cuts that are coming. GM is sending a team of feared slashers. Says the Wall Street Journal:
“Vice Chairman Steve Girsky, GM’s second-highest-ranking executive, will become chairman of the Opel supervisory board. Tim Lee, president of GM’s international operations, and financial chief Daniel Ammann also will join the Opel board, the company said.”
Supposedly, GM was surprised and appalled that the European business hit GM’s bottom line with an operative loss of $292 million in the third quarter, despite increased sales. I am not surprised at all. I have always warned that restructuring Opel and cutting jobs is an expensive exercise. And those costs were mostly delayed into the third quarter.
Now Girsky and his team of handpicked hatchet men are coming. (Read More…)
From his dream of a UAW-represented VW plant in Tennessee (ha!) to his desire for a seat on the boards of the Detroit automakers (double ha!), UAW President Bob King has a way of idealizing the German unions. And no wonder: while the UAW spent decades fostering a radical sense of entitlement, German works councils entwined themselves with their respective employers, earning places of power among the world’s largest automakers. But unions are a delicate balancing act in every country and culture, and even Germany’s unions, widely hailed as the example for the industry, can run into trouble.
Last time it was Volkswagen’s powerhouse works council, which erupted in a scandal over VW-funded sex tourism (with free Viagra and shopping trips for the wives!) back in 2005. With Opel’s union boss, Klaus Franz, becoming caught up in his own (slightly less lurid) scandal, GM’s acknowledgment that more cuts could be coming for Opel could prove just as explosive for the German works council model.
Reuters reports that GM Europe President Nick Reilly is retiring just as his successor predicts a slowdown the European auto market in the turmoil of the Euro crisis. Replacing Reilly is Opel’s CEO, Karl-Friedrich Stracke, who just last week told Automotive News [sub]
We expect that the automobile market in Europe will experience a painful cooling, and we expect a significant shrinking of the market.
And as if slow sales projections weren’t bad enough, Opel also faces a tough union boss in Klaus Franz, who is pushing for ever more production or not just Opels but Chevies as well, in the Euro zone according to AN [sub]. But despite the challenges facing Stracke, he’s still got a song in his heart… in the tune of GT. Though GM has no lightweight rear-drive platform to draw on, and in spite of all the gathering storm clouds, Stracke tells Auto Motor und Sport that
I can well imagine a car like the Manta, but with new technology and a new design. I could also very well imagine a proper Opel GT which recalls our classic model of 1968.
Ludicrous teasing? Possibly. An understandable escape from the depressing reality of mid-debt-crisis Europe? Definitely. I mean, what would you rather imagine, a cascading collapse of confidence in sovereign debt, or the scenario depicted above? Yeah, that’s what we thought…
Panoramic windscreens are something of a building trend in Europe’s premium-ish small car segments, combining the benefits of a sunroof with improved visibility. GM debuted the concept as a rarely-chosen option on the previous-generation Astra three-door, and it’s coming back with the forthcoming Astra GTC. Which raises an interesting question: since I’m convinced the GTC will come to the US as a Buick coupe, will this funky look come across the pond as well? Bob Lutz emphasized his preference for “glowering” low rooflines, telling TTAC that an early version of the forthcoming Cadillac ATS looked like “a kid with too large of a forehead” before he told designers to bring down the browline. Will an exception be made for this unique (to the US Market) feature on what should be one of GM’s most purely European cars? Or will Lutz’s aesthetic tastes doom GM buyers to observing traffic lights out of their side windows? Is this an option that other automakers should consider making available?
Aftre just one year on the market, Opel is ditching its Lifetime Warranty, says Das Autohaus in Germany. I don’t know how many new customers that braggadocious warranty got Opel, but it definitely got Opel into hot water. Everybody, from consumer advocates to Germany’s umbrella organization of the car business ZDK, was against it. Consumer advocates even brought suit. (Read More…)
Sex and money are known as the world’s biggest motivators. Volkswagen used sex to make its shop stewards cooperative. This ended in a huge scandal. Opel is using money instead. “The system is the same as formerly at Volkswagen – only without sex,” writes Germany’s Frankfurter Allgemeine Zeitung in a long article about “illegal bonus payments” to members of Opel’s works council. (Read More…)
Though the Chevrolet Spark has been in GM’s small-car spotlight this week, the firm’s Opel division is working hard on yet another tiny A-segment city car, tentatively known as the Junior or Allegra. Built on a shortened Opel Corsa platform, the Allegra will be a three-door, four-seat model targeted at the low end of the European market, at an estimated price of €10k. With a European debut targeted for the end of next year, Opel hopes to take the fight to the VW Up! And after it debuts, the smallest, cheapest Opel will become the home of an entirely new generation of small Opel-developed engines, with hybrid and EV versions rumored as well. Will it end up coming to the US as a Cadillac city car, as tipped by the recent ULC Concept? If gas prices go up, at least that option will be on the table…
Reuters reports:
Opel, part of GM Europe, has long sought to free itself of the constraints imposed by GM, which aims to keep it as a regional brand.
“One proposal would be to give Opel shares to SAIC,” [Opel union boss] Klaus Franz told Reuters, adding this move would allow GM to receive in return the 1 percent in the SAIC joint venture it is missing for a 50 percent stake.
“GM has never accepted that it owns 49 percent in the joint venture with SAIC and that the Chinese partners have 51 percent,” Franz said.
The joint venture builds Chevy, Buick and Cadillac vehicles in China.
“It would be a win-win situation for all and it would be a good way for us to enter the Chinese market,” Franz said.
Franz has long been a provocateur, but this one probably takes the cake. After all, SAIC and Opel together would almost be a better GM than GM… product development and booming China/India sales with none of the North American legacy costs. Don’t count on this happening, but it is an interesting sign of Opel’s renewed desire for independence from Mother GM.
Good news for Opel workers: They could all get Chevys, and GM CEO Dan Akerson won’t sell them down the river, to China, to Korea, or god forbid to Wolfsburg. “We would never give Opel away. Opel contributes to our global size and is not for sale, end of discussion,” Akerson told Germany’s Financial Times Deutschland. An unambiguous statement. Opel workers would have loved to hear it a bit earlier. But better late than Hyundai.
Akerson had more news. Some good. Some, well, you decide … (Read More…)
To be perfectly honest, we don’t know if the forthcoming Opel Astra CC (shown here in mule form) will be brought to the US and sold as a Buick, but it’s certainly been rumored. C&D says that, in addition to an Astra/Verano coupe, which it says will “definitely” be coming to the US,
Buick’s lineup could be graced with another Opel model that is currently under development. Replacing the folding-hardtop Astra Twin Top in Europe will be a new model that won’t be badged Astra, but will be based on the car’s Delta platform and remain close to the current model’s dimensions. The new convertible will keep its pronounced trunk and shed its clumsy hardtop in favor of a softtop, which should increase luggage space and make for a far cleaner look. Opel believes the softtop will create a more premium image.
The last Buick convertible? The 1990-91 Reatta convertible. But Buick’s probably hoping that nobody remembers those bad old days…
Terrance writes:
I will be moving to Poland with my wife and baby son in July. We will need a car, and trying to calculate value is tough for me, knowing very little about the Polish market.
I don’t know how much we intend on driving, but probably the occasional couple hundred mile trip on the weekend. I would like to keep my purchase price below 5,000 dollars and have something that is easy to fix where I can maybe take it to the guy down the street who operates out of his house’s garage, and not be too afraid of the guy not being able to get parts, not having too many special tools, etc.
The other aspect of European cars is the use of natural gas. It looks like “lpg” is big in Poland as many of the cars I checked out on allegro.pl have the natural gas option. Does this add to the complexity of maintenance? Will this provide more value per mile than a diesel engine?
The car has to be relatively safe, and a wagon with the room would fit our style as a growing family. There seem to be a lot of 10+ year old German cars that can be had pretty cheaply (allegro.pl). So far I like the Mercedes and BMW wagons from the early nineties. But something tells me that a 5 year old Honda Jazz would be a much smarter choice even if it might cost more upfront.
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