Opel: The Russians Are Coming!

by Bertel Schmitt

Published: April 25th, 2009

Ah, the suspense of a spaghetti western: Chrysler Vice Chairman Jim Press and sales chief Steve Landry told U.S. dealers on a conference call to hold their breath until they turn blue because “the automaker expected talks aimed at clinching an alliance with Italy’s Fiat to run all the way to an April 30 government-imposed deadline,” says Reuters.

In the meantime, Fiat’s bid for Opel is running into a phalanx of counter-fire and looks deader by the minute. According to Das Autohaus, the powerful metal workers union is “strictly against” Fiat. Also the Opel dealers are not enthused: “We want a strong partner for Opel, and that’s not Fiat” said Thomas Bieling of the Opel Dealer Council. Opel Supervisory board member Schild has compared Opel and Fiat to “two sick parents” who would not create a viable ensemble.

EU Industry Commissioner Guenther Verheugen told Bayerischer Rundfunk radio that he’s surprised that a “highly indebted” Fiat would show interest in Opel, saying Fiat “isn’t exactly the European carmaker that’s best off.”

Fiat’s Sergio Marchionne spat back, saying that Verheugen’s comments weren’t helpful or supportive for the future of the car industry. In contratto, Verheugen was “issuing death sentences for the industry or unilaterally selecting who will survive,” Marchionne complained to the Wall Street Journal. Marchionne found little sympathy.

Even Hesse’s premier Klaus Koch, ever the politician, now has “grave concerns” about Fiat and Opel. Fiat has similar problems as Opel, both have to scale down, and Koch doesn’t want the scaling to happen in his backyard and on his watch. According to Automobilwoche [sub], Koch now champions Magna-Steyr, the Canadian-Austrian parts and contract manufacturer.

Magna has another partner who might be interested in the latest technology: Russia’s Gaz, formerly known for their atmosphere-murdering Gaz jeeps, which even the Chinese have banned from their streets. Gaz also made the T70 light tank in WW2. Funny twist of history: GAZ started in 1929 as NNAZ, a cooperation between Ford and the Soviet Union.

Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments

Join the conversation

2 of 8 comments

Windswords on Apr 25, 2009

"In the meantime, Fiat’s bid for Opel is running into a phalanx of counter-fire and looks deader by the minute. According to Das Autohaus, the powerful metal workers union is “strictly against” Fiat. Also the Opel dealers are not enthused: “We want a strong partner for Opel, and that’s not Fiat” " I could see this coming. The Germans think it is beneath them to be rescued by the Italians. Opel wants to be rescued by another German company or Berlin. That's why Dumbler could never have really merged with Chrysler. What, and treat those Americans like equals? Can't wait for Mercedes turn.

Like Reply
FromBrazil on Apr 25, 2009
I could see this coming. The Germans think it is beneath them to be rescued by the Italians. Opel wants to be rescued by another German company or Berlin. That’s why Dumbler could never have really merged with Chrysler. What, and treat those Americans like equals? Can’t wait for Mercedes turn. Mr. Windswords, never truer words. I despaired at the thought of my fav auto co. buying Opel as I see no reason as Opel is out classed by just about anyone. But these responses from the Germans makes a part of me want the deal to go through just so that some Hans start taking orders from Luigis. It's gonna rock their world!

Like Reply

Recent Comments

Peter Buying an EV from Toyota is like buying a Bible from Donald Trump. Don’t be surprised if some very important parts are left out.
Sheila I have a 2016 Kia Sorento that just threw a rod out of the engine case. Filed a claim for new engine and was denied…..due to a loop hole that was included in the Class Action Engine Settlement so Hyundai and Kia would be able to deny a large percentage of cars with prematurely failed engines. It’s called the KSDS Improvement Campaign. Ever hear of such a thing? It’s not even a Recall, although they know these engines are very dangerous. As unknowing consumers load themselves and kids in them everyday. Are their any new Class Action Lawsuits that anyone knows of?
Alan Well, it will take 30 years to fix Nissan up after the Renault Alliance reduced Nissan to a paltry mess.I think Nissan will eventually improve.
Alan This will be overpriced for what it offers.I think the "Western" auto manufacturers rip off the consumer with the Thai and Chinese made vehicles.A Chinese made Model 3 in Australia is over $70k AUD(for 1995 $45k USD) which is far more expensive than a similar Chinesium EV of equal or better quality and loaded with goodies.Chinese pickups are $20k to $30k cheaper than Thai built pickups from Ford and the Japanese brands. Who's ripping who off?
Alan Years ago Jack Baruth held a "competition" for a piece from the B&B on the oddest pickup story (or something like that). I think 5 people were awarded the prizes.I never received mine, something about being in Australia. If TTAC is global how do you offer prizes to those overseas or are we omitted on the sly from competing?In the end I lost significant respect for Baruth.