Opel Watch: German Punctuality

Bertel Schmitt
by Bertel Schmitt

High suspense in the bidding for Opel. On Wednesday evening at 6 p.m., the deadline for bids had run out. However, only one bid—by Fiat—was in. But where was Magna? Minutes before the clock struck 6—or 18:00 in Berlin—the German government declared a stay of, well, execution.Then, finally . . .

On the dot at 6 p.m., Magna’s bid came in, reports the German Rheinische Post. Not all too surprising, it was a joint bid with the Russian auto maker GAZ, backed by the also-Russian Sberbank. GM finally confirmed receipt of three bids: Ripplewood had also handed in theirs. Nobody really knows, or cares, when Ripplewood handed in their papers. It was the Magna bid Berlin didn’t want to be without.

While officially GM has to approve the buyer, the real decision makers are in Germany’s government. They hold the purse strings of the loans any bidder will need. Berlin will decide by the end of this coming week—just in time for the impending bankruptcy of the mother ship GM. Tick-tock.

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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  • Cammy Corrigan Cammy Corrigan on May 21, 2009

    Threer, The UK is GM's largest European market, it would be unwise to annoy it by closing its manufacturing facilities, especially when it has made all the concessions GM asked of it. And given that the euro is at an all time high against the pound it would even more stupid to close the UK plants, which protect the UK market against currency fluctuations. In the meantime, Belgium was slated for closure until they started striking. So Belgium may not agree that it should be closed, but GM management certainly did.

  • Menno Menno on May 21, 2009

    I'm with Katie. The Belgians need to step up to the plate and take a hit (in the crotch) for the Opel/Vauxhall team. Perhaps if the New Opel says "close British plants" the uproar will be large enough in the UK tabloid press to change their minds. Certainly, I can see a LOT of Brits saying "NSFW those B*stards" and pulling Opel (badged as Vauxhall) and even Chevrolet (merely badged Daewoos) off their new car shopping lists. Even more catastrophic, given the number of private sales vs. "company car sales" would be if the company car buyers essentially refused to buy Vauxhall badged Opels.... What are the figures? 80% of new cars sold in the UK are "company cars" given as perks? Opel closes their two British plants at their own idiotic peril.

  • Stingray Stingray on May 21, 2009

    I like the Lego characters... =) I don't think Fiat will get it. As for why they're "rejected" I guess it has to do loosely on the fact germans know Iveco... and pretty well: Magirus and some other turck makers were purchased long ago by Fiat. Fiat may be able to get the LAAM branch of GM, which would give them still a big market, but not much in terms of product R&D. It would consolidate them as Nº1 in Brazil, Venezuela and some other markers down here.

  • Seth L Seth L on May 21, 2009

    I'm more interested in what's going to happen with Holden. Sounds like they're completely in the dark, and scared now that the G8 is going away.

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