#Opel
Analyst: Opel Is "The Chrysler Of Europe"
Talk about bad associations! Bloomberg reports that
General Motors Co.’s European Opel unit is introducing models with advanced options typically sold on luxury cars, seeking to revive a business that’s lost $14.5 billion since 1999.
The GM unit is working with AlixPartners LLP on how to tweak options packages or production plans to spur higher prices, said two people familiar with the matter. They are also studying ways to reduce engineering and manufacturing costs, said the people, who asked not to be identified disclosing private plans. Some new features include headlights tuned to high-speed driving on the Autobahn.
Which leads to one damning conclusion:
“They can’t price their cars like Audi or BMW,” said Thomas Stallkamp, principal of Collaborative Management LLC, a Naples, Florida-based consulting firm. Stallkamp, a former Chrysler Corp. president, was a partner at private-equity firm Ripplewood Holdings Inc. when it tried to buy Opel in 2009. “They’re like the Chrysler of Europe.”
Keep in mind, this isn’t just any old analyst… this is a guy who tried to buy Opel back when it was officially for sale. And though pricing issues in the face of rising costs are one Chrysler-like problem facing Opel, there’s another issue that may even be more troubling…
Hyundai Says Nein To Opel
Someone is really trying to shop around Opel. Or maybe it’s just a tactic to cow German unions into submission? Two weeks ago, Volkswagen and the inevitable Chinese were floated as possible buyers. What other bogeymen could there be? Ah, yes, the Koreans!
Wild-Ass Rumor Of The Day: Opel City Car Coming To The US
According to Auto Motor und Sport, this Opel “Junior” city car (A-Segment) could be sold in the US if Opel isn’t sold first and if union boss Klaus Franz gets his way. Though GM has ruled out selling the Opel brand in the US, Franz tells AM und S that
I can see strong demand for this car in the cities of the East and West coasts.
But if the Opel brand is off the table, what will this car be sold as? There’s been no rumor yet of a Buick-branded microcar, but Cadillac did recently show an A-Segment concept, called the ULC, that could tip the strategy for this car’s US-market design and branding. It’s just too bad TTAC’s Best and Brightest answered the question “Does Cadillac Need A MINI-Fighter?” with a resounding “NO”. But would a ULC-style micro-Caddy be any less appealing than a baby Buick? This car will be a tough sell coming from any of GM’s remaining brands, but with CAFE increases in the cards (and as prices rising anyway) this may an unavoidable conundrum.
Opel Soap, Day 6: We Don't Comment Rumors Of A Denial
Workers, government, the press, all want a clear statement from GM: Is Opel up for sale, or not?
No clear statement is forthcoming, and frustration runs high. There never had been an official denial of the possible spin-off. The stress is so enormous that an alleged telephone call in which GM’s Dan Akerson supposedly told Opel’s Karl-Friedrich Stracke that purportedly GM is not in talks with a buyer for Opel, makes headlines around the world. Is that for real?
Opel Soap, Day 3: Unions Demand Clarity, Deep Throat Speaks
Opel workers in Germany are getting increasingly frustrated and are banging the table. Rainer Einenkel, head of the works council in Bochum, today demanded that GM management in Detroit “immediately makes a clear and unambiguous statement, and to deny the plans of a sale without ifs and buts.” Rainel Einenkel writes on the website of the works council in Bochum that “ambiguous statements aren’t helpful, neither for the workers nor for our products.”
Yesterday, Germany’s chancellor Angela Merkel also demanded clarification from Detroit after the German newspaper Die Welt had written that China’s BAIC had made an offer for Opel. The paper said that GM’s board is tilting towards cutting Opel loose. On Thursday, Der Spiegel and Auto Bild had written that “GM is slowly wising up to the fact that the reasons that led to the planned Opel sale in 2009 have not changed.” Media reports said that GM CEO Dan Akerson is getting impatient.
Now, it seems, there is impatience all around.
In the meantime, I finally tracked down my former Opel executive who always had been a dependable source.
Opel Soap, Day 2.5: China's BAIC Wants Opel, Again
China’s BAIC, the car company that is for all intents and purposes owned by the city of Beijing, is after Opel. That’s what Germany’s Welt, a paper usually well connected with the current German government, heard “from sources inside the company.”
Opel Soap, Day 2: Detroit Snubs Frau Merkel, Again
Day 2 of the Opel rumor mill, and it keeps on grinding. Is Opel up for sale or is it not? Opel, their works council and regional governments close to the labor unions dismissed yesterday’s reports of a possible sale of Opel by GM as pure speculation. Yesterday, Opel chief Karl-Friedrich Stracke sent a letter to all employees. Today, he called an all hands meeting in Rüsselsheim and appealed to his workforce to ignore the nasty rumors. What is missing: A clear denial from Detroit. Today, Germany’s chancellor Angela Merkel demanded that GM should “provide clarity regarding the future of Opel,” writes Der Stern. And the magazine adds: “GM however continues to take cover.”
Breaking: GM To Sell Opel – To The Chinese Or To VW?
Both Der Spiegel and Auto Bild write that GM could throw in the towel on Opel and will put the loss making European division up for sale. Both papers are known to have high-ranking inside sources, both in Wolfsburg and in Berlin.
Auto-Bild: “GM is slowly wising up to the fact that the reasons that led to the planned Opel sale in 2009 have not changed.”
According to the paper, the German government has picked up indications that GM wants to sell Opel to unnamed parties in China. (Any guesses? Who’s building cars in China on Opel platforms?)
Now, says Auto-Bild, Berlin is worried about the yellow peril and turned to Volkswagen for help.
UPDATE: Reuters reports
“Akerson is fed up with Opel, and the turnaround isn’t gaining traction,” said a person familiar with the GM CEO’s thinking who declined to be named.
“He is trying to think of all possibilities to improve performance. But a sale is wishful thinking.”
How To Get Rich Quick: Lose Your Job At Opel, Collect $360,000
After tedious negotiations, and only after an arbitrator was brought in, GM’s Opel finally has a deal for its Bochum plant in Germany. As planned, 1,800 jobs will be cut. The deal will cost GM dearly.
Is This Buick's "Baby Enclave"?
Opel Descendant And Playboy Ends His Life
His mother’s father was Wilhelm von Opel, son of the Opel founder Adam Opel. His father’s father was the enemy of the fixies: He invented the freehub. His company was a major supplier of auto parts. But that’s not how the world remembers Gunther Sachs, who shot himself on Saturday in his house in Gstaad, Switzerland.
Monster European Perception Gap Swallows GM And Ford
From the sounds of a story at the Freep, both GM and Ford appear to get ready for bigger losses from Europe. Led by fanfares inflated by their hometown paper, Ford and GM seem to embark on a PR campaign to soften the blow at home:
“Europe was GM’s only unprofitable global region in 2010, extending the company’s streak of years in the red there to 11, with a $1.8-billion European operating loss. GM is hoping to break even in Europe this year before restructuring charges.”
(It’s the restructuring charges that will be the humdinger. Even if kept as non-recurring items, they will hit the bottom line in a big way.)
“Ford unexpectedly lost money in the fourth quarter in Europe, losing market share because it refused to match competitors’ incentives. It made a profit on European operations for all of 2010, albeit just $182 million of its $6.6-billion companywide profit for the year.”
And who’s to blame? The customer of course. The Freep’s informers see a gaping perception gap that is widening every day:
And the Real Winner Is…
Does General Motors have an unfair advantage when it comes to taking the top prize in 24 Hours of LeMons racing? The General’s LeMons soldiers have taken something like a third of all Index of Effluency wins during the course of LeMons racing’s four-year history… and today another GM marque was added to the IOE victors’ list: Opel!
Opel Tsunami Parts Shortage: Much Ado About ...
New twist in GM’s hunt for the elusive carpart: Opel’s Eisenach plant will resume normal operations tomorrow, Tuesday. It was reported to suffer a serious shortage of Japanese parts.
GM Pummeled By Japanese Tsunami, Akerson Waits
It is one of those strange twists of fate that Toyota’s arch-nemesis, GM, would be one of the first overseas automakers to experience shutdowns caused by a lack of supplies from tsunami-devastated Japan.
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