Germany

Breaking: Bob Lutz To Be New Chairman of Opel

By Paul Niedermeyer
November 6, 2009

Spiegel Online reports that Bob Lutz will be named Chairman, and head of the Supervisory Board of Opel. Carl-Peter Forster, who threw in his hat with the Magna buy-out, resigned on the news that GM intends to keep Opel. Forster, the first German to head Opel in decades, was seen to be more independent of Detroit, and respected for his management skills. According to the Spiegel report, managers at Opel are preparing for payback from Lutz, for any prior sins of supporting Opel’s independence and aversion to meddling from RenCen. Opel managers blame Lutz and GM management for pushing cheap Daewoo-Chevrolets in Europe at the expense of Opel, directly contributing to Opels recent problems. For Lutz, aged 77, this is a circular development to his long career which began in Europe with GM Europe (Opel) in 1963.

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Posted in Germany | Industry | News Blog | 32 comments

Opel: Germany Definitely Wants Its Money Back

By Bertel Schmitt
November 6, 2009

What happened two days after GM blindsided most of Europe, including Russia, with their decision not to sell Opel after all? As announced the next day, Opel workers in Germany laid down their tools today. Tomorrow, workers in Opel plants in the rest of Europe will follow.

Yesterday night, German Chancellor Angela Merkel picked up the phone, called her colleague Barak Obama and voiced her displeasure. “Obama said he had not been involved in the surprise decision by the GM board,” Reuters reports. Isn’t Teflon wonderful? Angela told Barak that his state-owned company better pay back the balance of the bridge loan by the end of the month. She even dispatched her very own collection agent to DC.
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Posted in Germany | News Blog | 34 comments

Opel Workers Set to Strike, Germans Recalling $2.2B Bridge Loan

By Robert Farago
November 4, 2009

GM’s last minute (i.e. post-German election) decision to pull out of a deal to sell its European Opel division to a consortium lead by Canada’s Magna Corporation has left chaos in its wake. The Associated Press reports that Opel workers throughout Europe are planning to strike GM on Thursday, protesting the automaker’s planned “rationalization” of  over ten thousand jobs. “IG Metall said workers at Opel’s four German plants would halt work Thursday, followed by similar moves Friday at other Opel locations in Europe.” Meanwhile, German Economy Minister Rainer Bruederle vowed “We will get the taxpayers’ money back.” Note: that’s German taxpayers’ money. And there’s only one way the nationalized automaker’s going to pay back that loan: with American taxpayers’ money. Seriously? Seriously. “GM Europe spokesman Karin Kirchner said the company is prepared to repay the euro1.5 billion bridge loan from the German government. ‘If we’re asked, GM will repay the bridge loan in question.’” Uh, that didn’t sound like a “request” to me. And speaking of plain speaking . . .

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Posted in Chapter 11 | Germany | High Finance | News Blog | 20 comments

Magna’s Demel Ready to Take Opel Helm

By Bertel Schmitt
November 1, 2009

The sale of GM’s Opel to Magna/Sberbank  is being mulled-over in Brussels (decision by November 27, maybe.) Sperbank’s Oligarch Oleg Deripaska finally was allowed to enter the United States after his visa was denied because of mob-related suspicions. He finally met Fritz Henderson, and some FBI agents. There is talk that GM doesn’t want to let go of Opel’s R&D. Will it ever end? Magna thinks so. A Magna man is ready to take the helm.

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Posted in Germany | News Blog | 6 comments

Opel FUBAR: CYA OR DOA?

By Bertel Schmitt
October 24, 2009

The GM-Opel-Magna-Sperbank deal is on its last gasp. On Friday, GM’s chief Opel negotiator, John Smith, said that nothing will happen until the GM BOD will get around to reconsider the sale at its next regular meeting on November 3, says Reuters. In the meantime, the matter turns into a chain letter exercise. Chain letters everybody wants to receive, but nobody wants to write.

As reported by TTAC, EU competition commissioner Neelie Kroes wants letters from all parties involved, certifying that the deal had not been reached under political pressure. All parties involved, meaning GM, the Opel Trust that officially owns Opel, and the German government. Except a vague note from Berlin to Brussels, no letters have been written. Nobody wants to write, everybody wants to receive a letter:
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Posted in Germany | News Blog | 9 comments

Brussels Impales Opel With Giant Fork. Turkey In Serious Condition

By Bertel Schmitt
October 23, 2009

A certain website that concerns itself with facts about automobiles, had opined more than a month ago: “Once matters move to Brussels, they come to a crawl. Whoever wins the German elections has all the time they want to dispose of Opel. If it goes kaput, they can blame the Americans and Brussels.”

The Opel matter finally moved to Brussels. EU competition commissioner Neelie Kroes said, she could set aside her considerable qualms about the GM-Opel-Magna-Sperbank deal, if only all parties involved would send her a simple letter that certifies that the deal had not been reached under political pressure. All parties involved, meaning GM, the Opel Trust that officially owns Opel, and the German government. Scout’s honor. Cross your heart, and swear to … exactly.
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Posted in Germany | News Blog | 13 comments

Porsche-VW Anschluss: The Worrying Bits

By Edward Niedermeyer
October 22, 2009

Volkswagen and Porsche are about to make it official, as Volkswagen has now bought nearly 49.9 percent of Porsche. And though we’ve had plenty of time to get used to the idea, there are some troubling indications for the future of the Porsche brand in particular. As usual, the worries begin with an executive (in this case, VW/Porsche’s Michael Macht) explaining exactly how the company will be able to have its cake and eat it too.

Porsche needs to become a strong pillar of VW, as well as having its own production and research and development capabilities. It is important to 
use synergies as well as having independence… Any new model would have to be exclusive, sporting and make a good business case. In any segment Porsche has to be the most exclusive, as well as being the best quality and capable of delivering the best driving experience

Unsurprisingly though, these fine sentiments are mere prelude to the nasty reality.

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Posted in Branding | Germany | News Blog | 30 comments

EU to GM: “Deliver That Letter, The Sooner The Better”

By Bertel Schmitt
October 21, 2009

Another day, another Opel that is still not sold yet. As reported before, EU competition commissioner Neelie Kroes made good on  her previous threats (which were ignored in wholesale fashion) and said that the €4.5b ($6.72b) in – mostly German – state aid for Opel may be against EU rules. So what now? One option seems to take Opel into insolvency.  But there’s another way to fix it: GM needs to certify that the Opel/Magna/Sperbank deal came together “without political pressure.” So says the German car dealer’s favorite read, Das Autohaus. If Brussels gets such a letter, then the qualms they have about possible anti-competitive behavior will just go away. It’s that easy?
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Posted in Germany | News Blog | 3 comments

Wild Ass Rumor of the Day: GM to Put Opel into C11

By Robert Farago
October 19, 2009

The Wall Street Journal reports that GM is developing a plan B, should the European Union decide that the German government subsidies upon which the Opel deal depends are a violation of some rule or another. “[EU competition commissioner Neelie] Kroes pointed to ’significant indications’ that Germany had made €4.5 billion ($6.72 billion) in state aid for Opel contingent on Magna winning the bid, therefore violating EU state aid and market rules.” GM now has a window of opportunity to reconsider the whole schmeer—as does the German government, Magna and their Russian sponsors. GM’s backup plan? Keep control of Opel and implement “deeper restructuring actions than Magna is planning . . . GM would fund the restructuring, which includes far more drastic headcount reductions, by soliciting government support or putting Opel into insolvency.” Which should be popular with about-to-strike Opel workers. Oh, and which government was that? Our government? No, of course not. Still, he/she who owns the gold . . .

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Posted in Germany | High Finance | News Blog | 7 comments

What’s Wrong With This Picture: Fit For A King Edition

By Edward Niedermeyer
October 15, 2009

In our Regal-welcoming thread, Martin Schwoerer noted that the Insignia is smaller inside than the Cruze.  And guess what? He’s right (trust but verify). The German-market Cruze has 963 mm (37.9 inches) of rear kopffreiheit, while Insignia comes in at 910 cm (35.8 inches) according (PDF) to the guys at motor-talk.de (who cite sources ).  These same resourceful forum denizens also dug up the range of distances between the rear and front seats on the Insignia and some competitors and by comparison, Insignia rear seating isn’t sitting pretty.

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Posted in 3WTP | Design | Future Vehicles | Germany | News Blog | 21 comments