Russian President Vladimir Putin first showed off his badass camo Lada Niva early last year, in an attempt to boost the fortunes of the floundering state-supported Russian automaker AvtoVAZ. What Putin didn’t reveal until just now is that his Niva isn’t exactly stock.”I won’t hide it [anymore?] , the car I bought has an Opel engine,” he tells the WaPo. “It turns out that it’s more powerful.” Now wonder Russian parliamentarians are starting to advocate dumping AvtoVAZ on Renault, which in turn is drawing a familiar homerism from local pols in Russia’s Detroit, Tolyatti. In other car-salesman-in-chief developments today, Barack Obama revealed that he believes GM is a world-class automaker because his Cadillac is so badass.

The German paper Rheinische Post runs an interesting op-ed piece today. Headlined: “Opel fights its demise,” the article concludes that Opel most likely won’t make it:

Opel CEO Nick Reilly is facing a dilemma. Even before the outbreak of the economic crisis, Opel was confronted with an overcapacity of 20 percent. The Abwrackprämie being behind us, sales will crater. This creates extra pressure to eliminate more jobs. If Reilly implements his restructuring program, then he will have to fight the opposition of the workers. For once, it is easy to put a number to this: €265m a year. The workers wanted to forgo this sum – if Reilly won’t shut down any plants. Now Reilly is €265m short – and has to cut more jobs. At that point, the governments, on who’s support Reilly counts, will call it quits. Whether Opel is kept alive with tax money, with funds from the parent, or with money from the workforce: an artificial respiration of a company is ultimately more expensive than anticipated. And it is almost never successful.

Not surprisingly, the decision to close Antwerp is not sitting too well with Opel’s European Works Council. Their reply: Forget the wage concessions you wanted from us, and which are so critical for Opel’s survival.

Management at Opel wanted employees to contribute €265m annually to the cause. The unions were ready to deal, but wanted shares. Reilly reneged on the shares, which raised union hackles. Now, the offer is off the table. And with it, an essential piece of Opel’s future. (Read More…)

Belgium’s Antwerp can focus on its core competencies as a hub of the diamond trade. Opel will close their plant in the port city of Belgium within the next months, reports Das Autohaus, citing an announcement by Opel. The plant will be closed “to safeguard the future of the company quickly and sustainably.”

Nick Reilly expressed his supposedly sincere condolences: (Read More…)

GM sent Opel “an additional $930m in temporary aid until more permanent financing can be found” (good luck with that,) GM disclosed in a filing with the SEC. The total financing GM has provided to Opel now stands at $1.83 b, writes the DetN. It’s not that GM sent the money out of the kindness of their hearts. (Read More…)

Between the tooling for the old Saab 9-5 being shipped off to China and GM “starting” the wind down process, even the most optimistic, “fuel tank is half full” members of the auto world are starting to think that it’s “game over” for Saab. Well, here’s the final nail (barring a completely audacious bid, from an equally audacious company, who want to spend millions of pounds on a damaged brand) in the coffin of Saab. The Local, a Swedish website, reports that GM are officially killing all plans to bring the new 9-5 to production. “It would be so sad that it never sees the light of day despite the fact that it’s a fantastic car,” admits GM vice chairman Bob Lutz.
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GM’s interimitis is turning into a chronic disease. First, Whitacre becomes interim replacement of Henderson, and is in no hurry to give up the job. Then, in November 2009. Nick Reilly becomes interim head of GM Europe while GM is supposedly searching for a replacement of Carl-Peter Forster. In December 2009, the interim boss was installed as permanent chief of GM Europe. Now, Reilly will be named permanent CEO of Opel, writes the Frankfurter Allgemeine Zeitung.
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Buick has announced that it’s bringing a high(er)-performance GS version of its Opel Insignia-based Buick Regal to the Detroit Auto Show, and later, to the US market. And for once we’re left wishing we were getting a rebadge. After all, for the first several years of US sales, Insignias will be imported from Germany, meaning GM could easily have brought the thoroughly mad Insignia VXR/OPC as a quick-and-dirty (if not cheap) rebadge. After all, the point of the Regal (and especially the GS) is that “we’re trying to rebuild the performance credentials that Buick once held,” as GM reps put it. The European OPC/VXR version gets a 325 HP version of the turbocharged V6 found in the SRX and Saab TurboX, while the GS gets only a 255 hp version of the 2.0 Turbo found in the Solstice GXP. That engine can reportedly be tuned to an easy 310 hp and 300 lb-ft of torque, making the “base” Regal CXL with the 220 hp 2.0T engine a much smarter buy. Unless the idea of tuning a Buick is simply more cognitive dissonance than you can handle. Otherwise, the only thing the GS really brings to the table is AWD and a bodykit with more front-end venting than the United States Senate. Still, if you’re young enough to not get a discount at Denny’s and you have to own a Buick, the Regal is the way to go… especially once an enterprising tuner starts offering Opel badging and grilles in the US market.

Opel already has big plans for its restructuring, despite the minor issue of being short a few billion dollars. According to an interview with Opel boss Nick Reilly in the print edition of Auto Motor und Sport, only a billion Euros of the €3.3b Opel turnaround plan is going to be spent on restructuring. The rest will be spent on new products like a city car, a “mini offroader,” and new high-tech drivetrains. According to Autocar, one of those high-tech drivetrain options is a a pairing that several firms including VW and Peugeot-Citroen already looked into but have yet to bring to market out of concern for the high cost: the diesel-electric hybrid. GM Europe’s Advanced Powertrain Chief Engineer Maurizio Cisternino explains “if you want the best fuel consumption, you have to go with the diesel-electric hybrid.” But there’s a tiny problem: Cisternino wants to get diesel-hybrid prices down to a €1,000 premium over gas-electric hybrids, a goal Cisternino admits “does not work at the moment.” Now if only GM had some government investment in the technology…

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The production version of the Opel Meriva has debuted, and as promised, the suicide doors made the cut. But will the Meriva come to America, re-grilled as a Buick? A Gamma II-based MPV is rumored for Buick’s 2012 lineup, and suicide doors might just be the gimmick that helps America understand the concept of “premium compact.” Even though, as the image after the jump shows, they are little more than a gimmick.

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To have a chance of succeeding with its Opel turnaround, GM needs two things: Financial support from the European governments to the tune of €2.6b. And concessions by Opel workers worth €265m a year.  GM itself doesn’t have more than $600m to contribute. Not the best bargaining position.

Chances of government support are getting slimmer as time goes on. Now, Opel labor representatives flat out refuse any support if GM sticks to its turn-around plan for Opel. It is “totally unacceptable” said Opel labor leader Klaus Franz. “A reduction of 9,000 jobs in Europe is out of the question,” Franz said to the Frankfurter Rundschau.
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Saabsunited ran a recent piece by Sweden’s Dagensindustrie through Google Translate, and came out with a possible (and very old-GM) outcome for the new Epsilon II-based Saab 9-5:

According to Dagens Industri’s sources, GM is planning to use the new Saab 9-5: an own model program, including a future Buick in the U.S.. GM is also in a letter to Saab’s sub-contractors have estimated the time of closure of Saab to five years.

There are sources in Saab Automobile in the Dagens Industri – DI – indicates that GM now see positive opportunities to closure of Saab. By making use of Saab’s technology, tools and production equipment for GM use the new 9-5: an – that would be launched in the spring – to a future Buick in the U.S..

In the GM is also talk of exploiting Saab technology for the production of a new premium car for Opel, “says DI’s sources. It would then be about the reopening of the closed trial with an Opel Senator in Europe.

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Russia’s Sberbank isn’t the only party that is unhappy with GM and wants to see money.

Germany’s government wants GM to put “a lot of money” on the table before any further discussions about European state aid for Opel would be entertained, reports Germany’s Handelsblatt.

Note that the harsh comments are coming from Roland Koch, Premier of Opel’s home state Hesse. Previously, Koch had been a vociferous proponent of state support for Opel. Not more.
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These days, no Christmas cheer is complete without a little Opel jeer. Russia’s Sberbank has demanded compensation from GM for reneging on the Opel deal, Sberbank CEO German Gref said in an interview on Russia’s Vesti television channel. Groveled a grouchy Gref:
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Whitacre is a completely different type of manager than what you saw at GM in the past. It’s refreshing to talk to someone that gained his experience outside of the company. He truly wants our cooperation, he doesn’t want any confrontation at all. Just the opposite, he says that only together can we make GM, Opel and Vauxhall successful.

Opel union boss Klaus Franz expresses sudden enthusiasm for working with GM’s new leadership. And that’s a hell of a turnaround from his previous opinions on GM management, including (but not limited to) his assesment that “GM does not enjoy any credibility or faith in the eyes of the public or the (German) government.”

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