GM Says Selling Opel Report Is Speculation

[William Maley]

GM Says Selling Opel Report Is Speculation

William Maley - Editor/Reporter - CheersandGears.com

June 9, 2011

General Motors is on the offensive with a report about them possibly selling Opel to another automaker. In a article published by Auto Bild and Spiegel, GM is considering whether to sell Opel due to management losing confidence in Opel returning to profitability. The article also points out that GM can use Daewoo to engineer and source small cars and low emission engines, something Opel has provided GM.

So, who are the possible buyers for Opel? The article points to the Chinese automakers and Volkswagen as possible buyers. Volkswagen could do it easily since they are currently sitting on 20 billion euros ($29.3 billion). Volkswagen declined to comment.

GM is not happy with the report. When asked for a comment, a spokesman for Opel said,

''It is speculation and we don't comment on speculation.''

Opel's CEO, Karl-Friedrich Stracke sent a letter out to employees today, calling the report speculative. The letter also states for employees not to be influenced by the report.

Sources in GM say executives are concerned about Opel. They're getting frustrated with the pace of Opel's recovery and are worried about Opel's future. A sale though is out of the question. Opel is tightly integrated with GM's global operations on technology and vehicle platforms.

One source says CEO Dan Akerson is getting frustrated with Opel.

"Akerson is fed up with Opel, and the turnaround isn't gaining traction. He is trying to think of all possibilities to improve performance. But a sale is wishful thinking."

If GM was to make a move with Opel, most likely it would end up partnering with another automaker.

Source: Reuters

[SAmadei]

Good. Get rid of it.

[Drew Dowdell]

What the hell would VW want with yet another German brand?

[Drew Dowdell]

Take Opel truly global

[Croc]

This is so stupid. Opel isn't going anywhere. GM just needs to reign them in a little bit...focus on the bread and butter and knock off all the low-volume niche vehicles until profitability is achieved. Let Buick share in more of the development costs. And for god's sake figure out what the hell is going on with Opel and Chevrolet market positioning in Europe.

[William Maley]

This is so stupid. Opel isn't going anywhere. GM just needs to reign them in a little bit...focus on the bread and butter and knock off all the low-volume niche vehicles until profitability is achieved. Let Buick share in more of the development costs. And for god's sake figure out what the hell is going on with Opel and Chevrolet market positioning in Europe.

I thought GM had it figured out.. Chevrolet would become the entry level brand while Opel was the step up

[ZL-1]

I thought GM had it figured out.. Chevrolet would become the entry level brand while Opel was the step up

That's what will happen. But GM's Board needs to understand that the auto industry runs fairly long product cycles and that it takes time (often more than a single product cycle) to re-position a brand. Selling Opel is dumb and was only on the table to please or trick Ms. Angela I-will-do-anything-to-win-an-election Merkel.

Edited June 10, 2011 by ZL-1

[Drew Dowdell]

Opel should be Europe's Buick

[Robert Hall]

Opel should be Europe's Buick

It seems the direction that GM is moving is:

Chevy-global broad-spectrum mainstream brand

Buick, Holden, Opel, Vauxhall- multi-region middle brands w/ some shared platforms and models

Cadillac-global premium brand

[Croc]

I thought GM had it figured out.. Chevrolet would become the entry level brand while Opel was the step up

That's what will happen. But GM's Board needs to understand that the auto industry runs fairly long product cycles and that it takes time (often more than a single product cycle) to re-position a brand. Selling Opel is dumb and was only on the table to please or trick Ms. Angela I-will-do-anything-to-win-an-election Merkel.

Opel should be Europe's Buick

It seems the direction that GM is moving is:

Chevy-global broad-spectrum mainstream brand

Buick, Holden, Opel, Vauxhall- multi-region middle brands w/ some shared platforms and models

Cadillac-global premium brand

AGREED with all of the above 100%. It's a no-brainer, really...which for GM likely means there's a 90% chance they manage to get it wrong.

[ZL-1]

It's a no-brainer, really...which for GM likely means there's a 90% chance they manage to get it wrong.

[RjION]

Opel should this ....... Opel should that. Well Opel should make money or be gone is the way I see it.

[Croc]

Opel should this ....... Opel should that. Well Opel should make money or be gone is the way I see it.

They're making some really nice Buicks now.

[SAmadei]

Opel should this ....... Opel should that. Well Opel should make money or be gone is the way I see it.

They're making some really nice Buicks now.

And even with the slightly higher brand equity, they are unable to make money on the balance sheet.