The Reilly Dilemma
The German paper Rheinische Post runs an interesting op-ed piece today. Headlined: “Opel fights its demise,” the article concludes that Opel most likely won’t make it:
Opel CEO Nick Reilly is facing a dilemma. Even before the outbreak of the economic crisis, Opel was confronted with an overcapacity of 20 percent. The Abwrackprämie being behind us, sales will crater. This creates extra pressure to eliminate more jobs. If Reilly implements his restructuring program, then he will have to fight the opposition of the workers. For once, it is easy to put a number to this: €265m a year. The workers wanted to forgo this sum – if Reilly won’t shut down any plants. Now Reilly is €265m short – and has to cut more jobs. At that point, the governments, on who’s support Reilly counts, will call it quits. Whether Opel is kept alive with tax money, with funds from the parent, or with money from the workforce: an artificial respiration of a company is ultimately more expensive than anticipated. And it is almost never successful.
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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