Opel Soap, Day 3: Unions Demand Clarity, Deep Throat Speaks
Opel workers in Germany are getting increasingly frustrated and are banging the table. Rainer Einenkel, head of the works council in Bochum, today demanded that GM management in Detroit “immediately makes a clear and unambiguous statement, and to deny the plans of a sale without ifs and buts.” Rainel Einenkel writes on the website of the works council in Bochum that “ambiguous statements aren’t helpful, neither for the workers nor for our products.”
Yesterday, Germany’s chancellor Angela Merkel also demanded clarification from Detroit after the German newspaper Die Welt had written that China’s BAIC had made an offer for Opel. The paper said that GM’s board is tilting towards cutting Opel loose. On Thursday, Der Spiegel and Auto Bild had written that “GM is slowly wising up to the fact that the reasons that led to the planned Opel sale in 2009 have not changed.” Media reports said that GM CEO Dan Akerson is getting impatient.
Now, it seems, there is impatience all around.
In the meantime, I finally tracked down my former Opel executive who always had been a dependable source.
- The board had always been divided over the Opel issue.
- There always had been a faction that favored letting Opel go and rolling up Europe from the East for Chevrolet.
- The board accepted to keep Opel after optimistic plans had been submitted.
- The plans saw Opel to return to profitability in 2012 or 2013.
- The plans assumed a rebound of the European economy and deep cuts in personnel and plants
- “The economy did not turn around. The restructuring plans were watered down.”
- “For this year, I expect a loss the same size as last year. Next year, no idea, but no black numbers.”
- A takeover by an outside party will be complicated and will necessitate several years of tight cooperation between GM and the buyer.
Note: He’s no longer at the company. These people usually have their old boys networks, but don’t know the latest.
As the $5 billion investment into GM-Daewoo, and another $1 billion investment into Russia show, the eastern front plans are alive and well. The GM stock would definitely do better without the losses on the books. The stock market loves growth stories. It punishes gllom & doom.
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western europe is not an automotive market with much in the way of growth. and being Korean isn't necessarily a negative in Europe, Hyundai and Kia top many Japanese brands in market share, including Honda.
Patz - you are right, Europeans like their Euro brands, before I moved to the US I owned a Rover (inherited), a Peugeot, a VW and a Seat. Euro brands don`t just top Korean brands they top Japanese brands. There is not much difference (as shown by the figures you quote) between the Koreans and well established and very successful (in the US) Japanese companies. I would also note companies like Subaru do badly in Europe as well. Chevy is an American brand, like Ford so that prejudice can to some level be overcome. I agree letting Opel go is probably a bad idea on balance but it is no longer that clear cut hence the discussion.