#Germany
Winterkorn Not Worried About Billion Euro Porsche Lawsuits. Or So He Says
After plans failed to sue Porsche in America, where juries are impressionable and awards are rich, the lawsuits are now in Germany, where courts are cautious, and where professional judges need to be convinced. The wheels of justice crank slowly.
Opel Abandons Bochum Completely
Bob King’s attempts to ingratiate himself with German unions, and to make Opel’s Bochum workers reconsider their decision to turn down Opel’s restructuring plan, are being ignored. Actually, it appears as if they had the opposite effect. Days after King’s comment, Bochum plant manager Manfred Gellrich rejected new discussions, saying Opel does not want to “waste precious time,” Reuters says. Over the weekend, Opel dropped another bomb: Bochum will be closed completely. A parts depot that was supposed to stay open, will also close its doors.
Volkswagen Faces Tough Times, Still Plans World Dominance
“The coming months will be anything but easy,” Volkswagen CEO Martin Winterkorn told Reuters today at VW’s annual shareholders’ meeting. Nevertheless, he still plans to rule the world.
Bob King Intervenes In Bochum, Receives Cold Shoulder
UAW boss Bob King told Opel’s Bochum workers to vote again, and to this time accept a deal that had been worked out between the German metal worker union IG Metall and GM.
Mercedes Loses Stars: Meltdown After NCAP-Disaster
Badge engineering: Kangoo, Dokker, Citan
Condition red at Daimler: Germany’s influential auto club ADAC gave the Mercedes Citan only three out of five stars in the Euro-NCAP-Crashtest. The loss of stars means “a meltdown” for the starred brand, says Automobilwoche [sub], “after all, the vehicle is supposed to excel with supreme safety.”
Supreme Court Halts Human Rights Case Against Daimler
The American justice system has shown a large degree of overreach in the not so distant past, punishing or shaking down foreign companies for misdeeds performed on foreign soils by foreign perpetrators on foreign victims. This is not a matter of right or wrong. It is a matter of jurisdiction and sovereignty. Enough is enough, says the U.S. Supreme Court and decided to hear Daimler’s appeal against a decision by a San Francisco court that workers or relatives of workers at an Argentina-based plant operated by Mercedes-Benz, a wholly owned subsidiary of Daimler, can sue for alleged human rights abuses performed by Daimler in the 1970s in collusion with Argentina’s then military junta. Daimler had been on the receiving end of judicial overreach in the past.
BMW Re-Releases 73 Year Old Gearbox
As the owner of a geriatric, but otherwise well maintained car, you know that getting parts can be a bitch. Depending on company policy, ex-factory supply of parts can cease after 12, or, if you are the lucky customer of a more dedicated maker, 15 years after the end of regular production. BMW now goes against that trend and offers parts for a car that went out of style 73 years ago.
GM Closes Bochum, Opens Itself To Costly Fight Over Severance Pay
Opel’s Supervisory Board, with half of its members delegates of the labor union, decided today the first closure of a German car factory in decades. According to Reuters, “Opel will end producing Zafira MPVs at its 50-year old Bochum plant by the end of next year, a move that has triggered a rare and public split within union ranks following months of tough negotiations.”
The closure will lead to the loss of 3,000 jobs in Bochum, as part of Opel’s attempt to put an end to 15 straight years of losses in Europe. It will be a while.
Smaller, Cheaper Benzes Ante Portas
Red alert for armchair marketing strategists: Daimler plans what surely will be branded as an inexcusable watering down of its brand equity: The Mercedes brand is working on a series of very small (under 4 meters) and affordably priced (17,000 to 20,000 Euro) cars.
Opel: Capacity Glut? Us? No Way!
Germany’s Chancellor Angela Merkel made appreciative noises o ver the 4 billion EUR GM wants to invest into Opel through 2016, but gave no indication that she is willing to chip in.
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.
Daimler In Trouble – And It Will Get Worse
A few months ago, we discussed what Nissan/Renault’s Carlos Ghosn calls a “structural decline” of Europe: Missing car buyers, brought on by a sudden decline of births around 1970. A population peak that now sits smack in the middle of the prime new car buying age, which in most of Europe is between 40 and 60 years, will retire in a few years, throwing Europe’s car industry in turmoil. Daimler, which has some of the oldest buyers, is beginning to feel the pain.
Akerson And Neumann To Visit Merkel
GM CEO Dan Akerson and freshly minted Opel CEO Karl-Thomas Neumann will receive a one hour audience with German Chancellor Angela Merkel this Thursday “to discuss the rejection of a plant closure timetable by workers which could speed the factory’s shutdown,” as Reuters reports.
Volkswagen And Greenpeace End Warfare
For years, Greenpeace and Volkswagen were engaged in a low level conflict over alleged high levels of CO2 emissions. Now, both sides decided to declare victory and to go home. After announcing ambitious CO2 goals before the Geneva Motor show, Volkswagen had a sit-down with Greenpeace, where both decided to bury the hatchet.
Opel's Bochum Workers Reject Deal, Prepare For Costly Battle
GM has a huge problem in Bochum – or an unexpected opportunity. Workers at Opel’s Bochum plant yesterday refused a restructuring plan that would guarantee auto production in Bochum through 2016, and that would keep the plant making components after that. GM answered on the same day: ”Production of the Zafira Tourer and the waiver of enforced redundancy will end after 2014.” This would open the door to closing the doors in Bochum.
It also could become extremely costly for GM.
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