Mary Barra Tries to Calm German, British Fears After PSA-Opel Freakout

Steph Willems
by Steph Willems

After yesterday’s shocking news of a potential takeover of GM-owned Opel and Vauxhall by France’s PSA Group, General Motors CEO Mary Barra hopped on a plane to the Fatherland.

Given the sudden uncertainty surrounding a major employer, Opel’s works council, labor union and the German government staged a collective panic attack. Soothing words were needed, stat. Britain, home of Opel’s Vauxhall sister division, would also like to hear a few assurances of its own.

According to Reuters, Barra appeared at Opel’s Rüsselsheim, Germany headquarters today. PSA CEO Carlos Tavares is reportedly planning a meeting with German officials, possibly including Chancellor Angela Merkel.

Yesterday’s freakout was not unwarranted. The GM-PSA discussions, now apparently at an advanced stage, were unknown to the German government and nearly the entirety of Opel’s workforce. Perturbed, the country’s economy minister called it “unacceptable” that it wasn’t informed of the high-level talks.

Rushing to get in front of the issue, the government is now in talks “at all levels” with GM, PSA and Opel, labor minister Andrea Nahles said today. Opel employs about 19,000 workers at three plants in that country, and the same amount at plants in Spain, Austria, Poland Hungary and the UK. Vauxhall employs around 4,500 workers in its two British plants.

Across the Channel, tensions are running high over the possibility of lost jobs. Britain’s Department for Business claims it is in close communication with GM over the issue, and Vauxhall’s labor boss wants a promise to preserve the brand’s workforce.

“I will also be seeking urgent conversations with the (UK) government because everything must be done to secure our world-class automotive industry,” Len McCluskey, head of the Unite union representing Vauxhall workers, told Automotive News Europe.

Despite its success in boosting revenues and streamlining operations at its domestic operation, GM hasn’t been able to bring its European divisions to profitability.

[Image: General Motors]

Steph Willems
Steph Willems

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  • TomLU86 TomLU86 on Feb 15, 2017

    I guess I don't understand what all the fuss is about. If PSA, or anyone, bought Opel, I'm sure they would inherit the same arrangements GM had. PSA is part owned by the French govt. France and Germany are the core of the EU (which has rewarded German industry at the expense of everyone else, especially southern Europe, which is shackled by the Euro and forced to buy German goods). I'm surprised GM would consider it--but if PSA made the first move, why not? PSA may see value in the vaunted German industrial enterprise called Opel that GM can't seem to tap into. As an American, I find it quite depressing to drive an Astra diesel RENTAL for a week on vacation in Europe, and then look forward to driving a new Cruze hatchback, an LT mind you, only to be disappointed by how poorly it compared to the Opel version of the same car. If GM can't/won't give us Americans the benefit of having Opel, and if Opel loses hundreds of millions year after year, give it to the French. How having a French owner is worse than a US owner for Opel and the Germans, I do not understand.

    • See 6 previous
    • 28-Cars-Later 28-Cars-Later on Feb 15, 2017

      @28-Cars-Later Keep digging. "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again." https://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/ The fix was in for nearly the entire Twentieth Century, only a few things seemed to not be taken into account.

  • Samuelmorse Samuelmorse on Feb 16, 2017

    Unfortunately, there are not top executives with strategic vision and sound international experience in GM today. If Opel has been losing money consecutively for eighteen years, what they need to do is to find a strong and seasoned leader to fix it rather than resorting to the easiest solution of selling out their problem. Exiting a huge market as Europe has an almost impossible turning back and probably a negative fallout in other regions where GM is present today, specially those which rely upon Opel technical support.

  • Ajla "Like showroom" is a lame description but he seems negotiable on the price and at least from what the two pictures show I've dealt with worse. But, I'm not interested in something with the Devil's configuration.
  • Tassos Jong-iL I really like the C-Class, it reminds me of some trips to Russia to visit Dear Friend VladdyPoo.
  • ToolGuy New Hampshire
  • TheEndlessEnigma TTAC just jumped the shark.
  • Peter Alaska. You got a long straight away. Lots of curves, and 2 hairpin turns in the south.
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