Opel’s supervisory board meeting ended with nothing. All the board, which consists of 50 percent labor and 50 percent of what is called “the equity side,” could agree on was that revenue, costs and margins are important. It’s good they have figured that out by now. Plant closures have been tabled. There is no sense in announcing them now anyway – plants cannot be closed before 2015.
It also must have dawned on some people that premature announcements of plant closures are bad psychologic warfare. You want your opponent doubting and hoping at the same time. So yesterday, after the meeting it was leaked that Opel’s plant in Eisenach might be sold. That’s what Reuters says, citing an article in Das Handelsblatt (which can’t be found in the on-line edition.) The Eisenach plant is fairly new. It was built 20 years ago after the wall had come down. It also was expanded last year with a $252 million investment.
A little later, Opel told Reuters that “this speculation is without base and is wrong. There are no plans to sell the Eisenach plant.”
This will drag on for a long time. It won’t be good for Opel sales, and it won’t be good for the GM stock.