By on April 11, 2013

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.

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10 Comments on “Akerson, Girsky Stand By Bleeding German Patient...”

  • avatar

    Akerson is going to put 4 billion euros into a company that is consistently losing money,in a failing market? DAN…….your fired !!!

  • avatar
    Big Al from Oz

    GM has to bit the bullet here.

    1. GM needs to research and find which Euro country offers the best chance to succeed in the Eurozone and set up shop there. Get out of the Eurozone countries that have to much input into the company’s operation.

    2. GM needs to not buckle to Unions and governments.

    3. GM has to put aside any government subsidies and look at the future. How much can many of these governments afford to give to a foreign employer.

    4. GM has think first about securing its future.

    5. GM has to forget about PSA and let it rot within the very controlling French environment.

    5. GM has to look to the future more if it doesn’t want to end up being bought out by Ford.

    6. GM has to stop managing itself as if it is a Eurozone government.

  • avatar

    My question is this, how much of this is for things GM would spend on things that weren’t really new and suddenly planned for their european icu patient. Things like engines and car platforms that will be used across all of its divisions. And how much is to spend on actually rescuing Opel.

    And I’m really getting a vibe that this largely for german and european poltical theater.

  • avatar

    Of course Opel enjoys the full support of the parent company….right up until they don’t. And it wouldn’t behoove the parent for anyone to find out about that too early, now would it.

    4Bil would sure wipe out a fair amount of excess capacity wouldn’t it?

  • avatar

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

  • avatar

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

  • avatar
    CV Neuves

    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.

    • 0 avatar

      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.

      • 0 avatar
        CV Neuves

        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.

  • avatar

    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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