Opel Watch: Send Money Urgently - Or Else

by Bertel Schmitt

Published: May 29th, 2009

Suspense in Berlin runs high. At 2 p.m., a meeting was held, German politicians only, no bidders, no GM, no treasury staffers. Fifteen minutes later, Chancellor Angela Merkel left the building—Opel watchers saw that as a sign of a final breakdown. Then at 3 p.m., GM and Magna show up at the Chancellory. Fifteen minutes later, Angela returns. At least they are still talking. 3:55 p.m.: The summit has been re-scheduled. Will start at 6 p.m.. It will be a long Friday night again in Berlin. If talks break down, it will be lights out in Rüsselsheim . . .

Opel will be out of cash and unable to meet payables this coming Wednesday, if the company does not receive €300 million immediately, Automobilwoche [sub] says, quoting unnamed sources inside of the Berlin negotiations. A bankruptcy filing will be inevitable. The way GM currently is negotiating, it seems like GM wants to see Opel go down with them.

With unwavering chutzpah, GM even offered to buy back Opel some day “when we do better after a restructuring phase.” Flying pigs were spotted in the vicinity of Berlin’s Tegel airport.

Quick help for Opel may be frustrated by EU politics—or not. José Manuel Barroso, president of the European Commission, reminded everybody that “EU rules must be met” when rescuing European subsidiaries of GM. In March, EU member had agreed that there will be no rescue attempt “without preceding information of and coordination with the other affected European member states.” It’s the Pentecost holiday and on Monday, the banks will be closed. Some fast consultation and coordination will be in order to get the money to Opel—if someone is found who has it sitting around. As a precaution, representatives of EU members with Opel plants congregated at 3 p.m. in Brussels, officially for “an exchange of opinions.” Unofficially, to be sufficiently informed and coordinated in case a decision is reached in Berlin.

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.

More by Bertel Schmitt

Comments

Join the conversation

2 of 5 comments

Stingray on May 29, 2009

@GS650G +1 Would you mind sharing yours?

Like Reply
RogerB34 on May 29, 2009

Germany can not afford an Obama bailout. Cannot!

Like Reply

Recent Comments

VoGhost Just reminding us all that we have to tolerate dealers (many of whom are billionaires) in the US if we want new legacy ICE vehicles because the dealers pay for the campaigns of local politicians, with our money.
1995 SC I'm still trying to get past the fact that the Red Bull guy is married to a Spice Girl.
Ravenuer Not into F1. Started watching NASCAR back when they raced actual cars. (yeah I'm that old). Not any more. They aren't "stock cars" now. Not even close. Even drag races don't interest me anymore. Races are over in 3 seconds.
Wjtinfwb No confusion on my end, Ghost. The Government has zero role in job creation outside of the legitimate opportunities' created by Government going about it's responsibilities, namely keeping the American people and territory safe from foreign intrusion. Of course, they're failing epically at that but that's a different topic. The American free enterprise system is what enables job creation. Government's role is to stay out of the way of that system, but they seem incapable of doing so. Oil & Gas exploration is just one example. If a National Job Policy is what you're looking for, there are other countries that will be happy to accept your application for residency.
Michael Smith I drive 100-300 miles a day in new BMWs, Mercedes-Benzes, and GM SUVs. Some are already equipped with automatic braking.It's the first thing I turn off when I start the car.I've had experiences where (as the author notes) the system gave false alarms and stabbed the brake pedal, threatening my ability to control the car.Further, every driver encounters situations where, for example, legal following distance must be momentarily compromised in order to avoid a difficult situation. When the system intervenes, it disrupts the driver's plan of action. This can lead to a collision as the driver has to suddenly react not to his surroundings, but to the system.Not only is automatic braking an insult to skilled drivers, it's dangerous to everyone.