Opel Soap, Day 3: Unions Demand Clarity, Deep Throat Speaks

Bertel Schmitt
by Bertel Schmitt

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.From his holiday home where he observes the long Pentecost weekend, he said:

  • The board had always been divided over the Opel issue.
  • There always had been a faction that favored letting Opel go and rolling up Europe from the East for Chevrolet.
  • The board accepted to keep Opel after optimistic plans had been submitted.
  • The plans saw Opel to return to profitability in 2012 or 2013.
  • The plans assumed a rebound of the European economy and deep cuts in personnel and plants
  • “The economy did not turn around. The restructuring plans were watered down.”
  • “For this year, I expect a loss the same size as last year. Next year, no idea, but no black numbers.”
  • A takeover by an outside party will be complicated and will necessitate several years of tight cooperation between GM and the buyer.

Note: He’s no longer at the company. These people usually have their old boys networks, but don’t know the latest.

As the $5 billion investment into GM-Daewoo, and another $1 billion investment into Russia show, the eastern front plans are alive and well. The GM stock would definitely do better without the losses on the books. The stock market loves growth stories. It punishes gllom & doom.


Bertel Schmitt
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.

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  • Obruni Obruni on Jun 12, 2011

    western europe is not an automotive market with much in the way of growth. and being Korean isn't necessarily a negative in Europe, Hyundai and Kia top many Japanese brands in market share, including Honda.

    • Patz Patz on Jun 12, 2011

      Obruni, when you say that western europe will not grow anymore - I think you are right. But when you say 'Korean isn't necessary a negative in Europe', sorry but I think you are wrong. Hyunday and Kia together had 2,8+1,7 (4,5 in total) in the overall European Union, Opel alone has 7,8%; Toyota 4,5. Chevrolet 1,2%. Honda 1,6%. Source: ACEA; basis: Jan-Mar2011 In a few words, they are in a good shape thanks to good value for the money - as soon as the price gap gets closer for a Korean to an European, the customer goes to the European car.

  • Mike978 Mike978 on Jun 12, 2011

    Patz - you are right, Europeans like their Euro brands, before I moved to the US I owned a Rover (inherited), a Peugeot, a VW and a Seat. Euro brands don`t just top Korean brands they top Japanese brands. There is not much difference (as shown by the figures you quote) between the Koreans and well established and very successful (in the US) Japanese companies. I would also note companies like Subaru do badly in Europe as well. Chevy is an American brand, like Ford so that prejudice can to some level be overcome. I agree letting Opel go is probably a bad idea on balance but it is no longer that clear cut hence the discussion.

  • CanadaCraig VOTE NO VW!
  • Joe This is called a man in the middle attack and has been around for years. You can fall for this in a Starbucks as easily as when you’re charging your car. Nothing new here…
  • AZFelix Hilux technical, preferably with a swivel mount.
  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
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