Nothing out of the ordinary for a semi-socialist nation which thought nothing of what many Americans are soon to get used to; privatized profits and socialized losses (i.e. given to the taxpayers). In fact, it was not even that severe for Borgward; Borgward paid proper interest on the bridge-loans and kept the stadt from having job losses and huge unemployment expenses.

Until 1961, when (it is rumored) that certain other automotive executives were unhappy with the recently introduced Borgward Grosser (large) Limousine (sedan) in competition with their um, new Mercedes finback line. So out come the knives, and before you know it, the politicians put out a rumor that Borgward is insolvent, the creditors call in the banks, the bridge-loan is refused, and Borgward winds down, laying off thousands of workers and joins the rest of the dead automotive marques in the dustbin of history.

I have to wonder if Opel’s days are numbered.

At least this should make it clear that Opel with its R&D facilities should be viable on its own. They may not have an electric car in their pipeline, but since this would anyway not add much turnover in the near future, there is no serious problem. For the rest: they have been doing the engineering on the European style cars any way, so they are well prepared to be on their own. Who the hell needs GM anyway?

The Volt was dreamed up by Lutz brainstorming with with other GM techies after he heard about the Tesla. Opel did not then have an active EV program. But Weber’s earlier expertise with the EV-1 made him the man to bring back to head up the Volt’s development.

Well done. Trying to translate the German gave me a few memorable flashbacks to my US Army infantry daze along the border in ‘88. Love the WWII history references, too.

He says, the guarantees are a precaution for the “theoretical case that the financial streams with GM in the USA go dry.” (Translation: When GM gets blown up with a compound commonly known as C7.)

As I approach my mid 40’s, I think lines like that are better than bad sex.

Der Spiegel: “One strategic department has already been moved to the USA in the beginning of this year: The inventor of the hybrid car Volt comes from Rüsselsheim and his name is Frank Weber. This case is a prime example for the currently very much US-focused politics at GM. The green car is supposed to lift the image of the mother ship, Opel has to wait. The Volt will be introduced in Europe only after it had premiered in the USA. The investments for the four banger that is built into the car to charge its batteries, will be kept by GM in the USA. A factory with approximately 300 jobs is planned for Flint, IL. From the perspective of GM’s HQ, this strategy is consistent. Analysts think that GM has to assuage the US government, so that governmental monies for GM have a chance of approval. Therefore, any surplus capacities will be eliminated in Europe first, and not in the USA.”

As consistent the DC-centric view may be, Germany has its own perspective. Now, GM comes to Berlin, begging for money. They will have to listen to a lecture regarding the world watched through Berlin’s eyes.

I climate matters, Berlin is mightily pissed at the US. According to http://www.bloomberg.com/apps/news?pid=20601101&sid=aTYTqcXZf7fE&refer=japan Japan and Europe are looking at a $46b global-warming penalty, because they still are releasing more greenhouse-gas pollution than they agreed to under the Kyoto treaty to curb global warming. The USA, where more than 40% of the cars are SUVs and trucks, didn’t even bother to sign Kyoto, hence no payment. No money, but co-opting the green?

It is in German, but if you search for “Frank Weber”, you’ll find some additional info. Weber was at Opel R&D where the Volt was thought up. Now he and his team have been moved to Detroit, but he’s still leading the Volt development.

If you look at what GM R&D is actually doing, the only thing they’re actually on the forefront is hydrogen technology.
Opel on the other hand has to compete in Europe where gas prices are way above those in the US and they’re specialized on small, efficient cars. So they have the expertise in fuel efficient cars more than anyone within GM. Again, just think of the Epsilon platform.

Tom, would you care to document that claim? It certainly goes against everything that I’ve known about the genesis of the Volt.

What is it with these Germans who insist on speaking German?

I know.It must be a genetic defect …

As for the troops: Don’t fret. US presence in Germany is a shadow of its former glory. My former father in law (bless his soul) was an aide of SACEUR Lemnitzer, so for historical reasons, I’m keeping tabs on the situation. The US barely has enough troops in Germany to defend Ramstein Air Base, and the Landstuhl medical center, both important trans-shipment points for the war in Iraq and Afghanistan. Usually, troops get rotated to Iraq, and then back home. Current guesses are a mere 30K troops left in Deutschland,which may not be at their bases all the time, but otherwise employed in the Mid-East.

Opel’s state isn’t as rosy as it might seem to be. Your comment sounds a little bit like the grass is always greener on the other side.

Of course Opel got dragged into a lot of problems by GM, but it speaks volumes that among the German auto makers, Opel is hit hardest by the current economic downturn. People just don’t trust Opel anymore. It’s probably similar to – say – Chevrolet in the States. Opel had horrible reliability figures during the 1990s and early 2000s. Now, they probably have the most attractive line-up in a long time, but it’s hard to win back consumer confidence, once you lost it.

Also, Opel is a mass market manufacturer, nothing premium there. The only way for Opel to compete with Volkswagen is via price. Their last upper segment models went out of production in 1977 (Kapitän, Admiral, Diplomat), their last middle segment model in 1994 (Senator) [or 2002 if you want to count the Omega]. Anyway, Opel pretty much only produces small compact cars, micro and compact vans and stuff like that. The only exception is the Vectra and its handsome successor, the Insignia, which has actually grown quite a bit. However, the last time Opel tried to sell a “premium” car (Signum) it didn’t work at all…

Anyway, after I looked up “Heim ins Reich,” I found it’s quite appropriate to use it in the context of this editorial. Sort of like saying Opel will go “back in the fold.” Sure, Hitler used the phrase, but he wasn’t talking about Hesse. After all this time you’d think the Germans would have forgotten about WW II.

And is there really that much concern over Opel’s future? It should be fine whoever owns it. My impression is that Opel and the other German brands are highly valued by consumers for their prestige and engineering prowess. Even VW owners seem to feel a smug satisfaction that their cars are extraordinary. So German autos and everything else they make should continue to command premium prices, and that should keep Germany a powerhouse, economically and otherwise. So it rankles me that the US still keeps troops there. Europe can defend itself (if it sees a need to do so), and America no longer can afford to pay the bill.

BMW and Daimler are competitors. Opel is more selling to a different market so joining that partnership is a real posibility but i don’t think that Opel partnering with another car company would be surprising

ps. Opel was nationalized by the nazi’s so it hasn’t been continual been foreign owned since 1929.

What many people don’t know: The Volt used to be an Opel. It was a German project that got transferred to America because GM needed a poster child. So the expertise is there. Or think about the Epsilon platform which underpins all the small GM vehicles and which was developed by Opel.

Having said that, I’m not sure whether an independent Opel could survive either…but it’s chances would definitely be better than within the GM empire.

Keep in mind that all the major Euro manufacturers see the CO regs as a serious challenge, and are investing heavily in hybrid and EV technology. Opel is totally dependent on GM-NA for that.

It certainly would not be easy. But other companies also work on hybrid and EV technology and should be prepared to share to lower the costs. Even BMW and Daimler have now started cooperating on certain issues. Finally, this is future talk. The Chevy Volt would not make up for a high part of the turnover anyway.

Ownership from the states: Lower Saxony had 20% in VW since ages – this you cannot compare. Baden Wuerttemberg may be eying to somehow protect Daimler, but I neither see the funds nor really anyone taking a decision to invest there. And Opel: it was foreign owned since 1929. The states know they cannot run it better than the experts. I believe this is a very defensive move, not more.

Demant: as long as Opel lives, he as CEO of a GmbH has certainly no troubles. However, once Opel would become insolvent, and he would keep paying GM, he would face serious criminal charges under bankruptcy laws. Also, intercompany dealings must be done on arms lenghts basis, otherwise you participate in tax fraud. I see this as first signs that he tries to make sure he does not run into these problems.

Opel sales and market share in Western Europe have been declining precipitously for some years now. I don’t particularly believe that Opel’s losses are from intra-company transfers. The Astra (and previously Kadett) was a perennial #2 in German sales behind Golf. Now it’s #5 and falling. And I don’t see sales success written on the Insignia’s handsome face. Ford’s highly praised new Mondeo is selling weakly. Opel and Ford just don’t have the brand cachet with very brand-image oriented Europeans in the mid-upper price range.

Keep in mind that all the major Euro manufacturers see the CO regs as a serious challenge, and are investing heavily in hybrid and EV technology. Opel is totally dependent on GM-NA for that.

Saab is nothing but a badge to slap on re-skinned Opels, (and Trailblazers and Subarus). Saab’s future is much more precarious than Opel’s, even.

The automotive world keeps changing, and (despite a soft spot in my heart for Opel) I have a hard time seeing much of a future for Opel in it.

And where no story is complete without mr Dodenhöffer’s comment: he ’s always wrong. doesn’t know a **** about the car business

To suggest that Opel’s incredibly strong union, IG Metall, is some kind of benevolent and helpful partner while the UAW is an unbending contributor to GM’s demise is a bit disingenuous. Ask Volgswagen. And furthermore, scan the 2007 UAW agreement which gave worker concessions the likes of which IG Metall would never agree to.

Spring Hill, the original plant that was built to make Saturns and only Saturns under a unique union contract now builds the Chevy Traverse.

From the pens on the desk to the engineers, stylists, workers, Saturn was probably the purest interation of an “all GM” car. All money was drained from everything else @ GMNA to feed Roger Smith’s Walter Mitty fantasy of a dried up bean counter becoming an automobile mogul. Surprising it wasn’t call the “Smith”.

All other Saturns either come down the same lines as other GM brands or come from Europe in the form of the poorly selling and money losing Astra.

There is nothing for GM to sell there. What does this mean for Holden in Australia?

Demant? Let’s not forget that they changed Opel to a GmbH, the lowest form of a German corporation which anybody can start who has €10000 to put in a bank account (and which can be spent immediately.) Demant is the Managing Director of said GmbH, and he serves at the pleasure of the owners. Means: He can be fired on the spot. Any apprentice has more job security than a MD of a German GmbH. He’ll be very careful in exercising his fiduciary responsibilities.

Saab is the luxery brand of Opel. It makes a lot of economic sense to also include it in the sale. (assuming that buying Opel makes economic sense which is the question but that doesn’t really matter for the likely buyer, a Russian company “not controlled by the state”)

ps. If GM sells Opel that it wouldn’t only sell Vauxhall also but most like saab as well. And selling Saturn brand with it would increase the price nicely