Akerson, Girsky Stand By Bleeding German Patient

by Bertel Schmitt

April 11th, 2013 11:35 AM

akerson girsky stand by bleeding german patient

GM CEO Dan Akerson and his dispatched-to-Europe fixer Steve Girsky emphatically denied that its loss-making Opel arm is up for sale or might be merged into a joint venture with equally loss-making Peugeot.

“As a global automotive company, GM needs a strong presence in Europe – both in design and development as in manufacturing and sales,” Akerson told Reuters in Rüsselsheim. “Opel is key to our success and enjoys the full support of its parent company.”

Opel Chairman Steve Girsky told Reuters that speculation of a disposal was unfounded.

GM announced it will invest 4 billion euros ($5.2 billion) in Opel by the end of 2016 to support new model launches. Opel is set for a 14th straight annual loss while European car sales plunge to their lowest in almost two decades.

GM had an operating loss of $1.8 billion last year in Europe.

#Akerrtson #BertelSchmitt #Germany #Girsky #GM #Opel

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6 of 10 comments

SCE to AUX on Apr 11, 2013

So this is where the saying 'throwing good money after bad' comes from?

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Lorenzo on Apr 11, 2013

So 4 billion Euros is the price of shutting down the German plants? That would make Opel a Polish/Slovakian company, wouldn't it?

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CV Neuves on Apr 12, 2013

Opel seems to have at least in terms of technology development significance for GM. Opel exports are also most likely be the GM mainstay in Australia after the closure of Holden there by the end of the decade.

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- Lorenzo on Apr 12, 2013
  
  Due to the high value of the Euro, exporting from Europe is a money-losing proposition. Car makers prefer low cost countries to export from for that reason. The European car makers would be export monsters if the Euro dropped in value, and much of the PICIGS' (had to get Cyprus in there) financial distress would be alleviated, but the Germans won't accept the inflation that would result.
  
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- CV Neuves on Apr 12, 2013
  
  @Lorenzo You are probably right there. GM is already significantly investing in the Opel infrastructure in Australia and are scaling Oz GMH, General Holden Motors, down. The value lies in the technology and the brand. If the actual Opels eventually end up coming from somewhere in Transsylvanya or Turkey matters not really.
  
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Pacificpom2 on Apr 12, 2013

So Akerson lies to governments around the world. In Australia, in Germany and anywhere else they pressured governments to hand over cash for jobs with no intention of keeping their (GM's) promises.

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