What good is Opel to GM?
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Registered User
Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
A case in point...
Open letter from GM’s Union Leaders:
The current restructuring plan for General Motors Europe and its brands and companies is not viable. It will finish off the European operations and implies several risks of litigation for the corporation.
The spin-off of Opel/Vauxhall as outlined above and the spin-off of Saab is the only reasonable and feasible option for General Motors which would not destroy the European operations and its European assets and could avoid law suits.
The spin-offs would exclude any further financial risk for General Motors. The deal could be structured in a way to provide GM with important access to technology developed at the European Engineering Centers which General Motors desperately needs to stay alive.
http://www.thetruthaboutcars.com/gm-...hall-spin-off/
The current restructuring plan for General Motors Europe and its brands and companies is not viable. It will finish off the European operations and implies several risks of litigation for the corporation.
The spin-off of Opel/Vauxhall as outlined above and the spin-off of Saab is the only reasonable and feasible option for General Motors which would not destroy the European operations and its European assets and could avoid law suits.
The spin-offs would exclude any further financial risk for General Motors. The deal could be structured in a way to provide GM with important access to technology developed at the European Engineering Centers which General Motors desperately needs to stay alive.
http://www.thetruthaboutcars.com/gm-...hall-spin-off/
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Joined: Sep 2004
Posts: 1,448
From: Irving, TX
If I read that same letter, I don't see why anyone would really want to buy Opel. GM is having to cut production because no one is buying cars. Besides, this is a slanted letter. Automotive unions writing a letter like this is pretty ridiculous. They are looking to save their jobs, but I am not sure automotive unions are the people you should be talking to for actually running a business. Quotes like,
So, why would anyone want to buy Opel at this point? Sounds like it would die anyway. There have been no takers for Saab. The only offer for GM for Opel was too small for it to matter. I don't see how spinning off/selling this brand would help. It actually sells cars. It would like be asking GM to spinoff Chevy. It takes a huge amount of money and effort to get into a market. This would be GM essentially exiting several markets.
GM's management has caused a lot of problems. I don't see how selling/spinning off Opel would help GM survive.
The only option left would be that GME/Opel/Vauxhall asks for rescue-aid instead of loans guaranteed by European governments. Then it must cut capacity by 30%. No company has ever survived this large of a reduction.
GM's management has caused a lot of problems. I don't see how selling/spinning off Opel would help GM survive.
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Registered User
Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
GM ready to give up control of Opel, European operations almost out of cash
http://www.gminsidenews.com/forums/f...ut-cash-76239/
So what do people think now about GM's relationship with Opel?
It appears that GM have robbed Peter to pay Paul... cross Peter and make that both Opel and Holden.
So what do people think now about GM's relationship with Opel?
It appears that GM have robbed Peter to pay Paul... cross Peter and make that both Opel and Holden.
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Joined: Jun 2006
Posts: 439
From: upstate New York
Tough call- Opel has global recognition as a builder of good cars, good German engineering- You would have hoped that GM could have learned to build nice small cars like the Kadett GT and Rallye that they were importing from Opel in the late 1960's and early 1970's Those cars were light-years ahead of the citations and vegas that GM was foisting on the public-
If they keep Opel they can sell cars in Europe without import tariffs, might be important for long term viability to compete in the global market- I would hate to see Opel go the route of Triumph or many other manufacturers- hard to believe-
If they keep Opel they can sell cars in Europe without import tariffs, might be important for long term viability to compete in the global market- I would hate to see Opel go the route of Triumph or many other manufacturers- hard to believe-
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Joined: Sep 2004
Posts: 1,448
From: Irving, TX
http://www.gminsidenews.com/forums/f...ut-cash-76239/
So what do people think now about GM's relationship with Opel?
It appears that GM have robbed Peter to pay Paul... cross Peter and make that both Opel and Holden.
So what do people think now about GM's relationship with Opel?
It appears that GM have robbed Peter to pay Paul... cross Peter and make that both Opel and Holden.
GM funded Europe for a long time. Now, no one at GM is making money. This reminds me of when GM started selling off parts of GMAC. That was a great move too. It won't matter anyway if no one bites. I don't think this is a company that can help with 3 billion dollars right now in Europe that would be willing to invest in a car company.
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Joined: Mar 2001
Posts: 13,713
From: The Golden State
http://www.gminsidenews.com/forums/f...ut-cash-76239/
So what do people think now about GM's relationship with Opel?
It appears that GM have robbed Peter to pay Paul... cross Peter and make that both Opel and Holden.
So what do people think now about GM's relationship with Opel?
It appears that GM have robbed Peter to pay Paul... cross Peter and make that both Opel and Holden.
Your header says it all : European operations ALMOST out of cash!
GM North America as been COMPLETLY out of cash since the end of December, and has been operating with US Taxpayer money ever since.
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