#Germany

Down to the wire, and nothing: German unions had set Opel a deadline until today to come to an agreement about the future of Opel. The unions had offered to forgo a 4.3 percent pay hike and waive future pay raises if Opel extends a moratorium on plant closures through 2016. Today’s deadline passed without an agreement, Reuters says.

Mercedes wants to double its passenger car sales within the next eight years. By 2020, Mercedes wants to raise its sales to more than 2.6 million units annually, from 1.3 million this year. This is what Daimler CEO wrote in a letter to all employees. Automobilwoche [sub] has a copy.

Europe’s car crisis found 4,300 new victims: As expected, union representatives at Ford’s Genk plant in Belgium were told this morning that the plant will be closed. 4,300 workers will be out of a job.

Today, BMW confirmed what you could read here last week: The Bavarians will build a BMW factory in Brazil. BMW submitted an investment plan to the Brazilian government, BMW says.

Volkswagen will roll out its new NFS, MQB, MLB and MSB kit architectures to Brazil, Volkswagen do Brasil chief Thomas Schmall told Automobilwoche [sub]. The first representative will likely be a very small SUV, based on the UP! NFS (New Small Familiy) architecture.

Union representatives at Ford’s Genk plant in Belgium have been summoned to an emergency meeting on early Wednesday morning. No reason has been given, but unions expect the worst, says Reuters: The closure of Ford’s Genk factory.

Yesterday, La Tribune in Paris had it on good authority that moribund Opel and the carmaking arm of PSA Peugeot Citroen would be merged into a joint venture.Reuters started digging a bit deeper and can say with conviction that “General Motors and PSA Peugeot Citroen are exploring ways to combine European operations in a second phase of the carmaking alliance they forged to save costs earlier this year.” They just don’t know yet how.

German unions know that “end of October” means more for GM than October 31. German unions now demand a final deal with Opel by October 26. If there is no deal, it will cost Opel: Opel can defer paying a 4.3 percent industry-wide wage rise until October 31, if there is no deal, Opel has to pay. Also on October 31, GM will publish its third-quarter earnings.

Volkswagen hasn’t published its group sales for September yet (it is expected to do so later in the week), but Reuters already saw a PowerPoint slide with 6.802 million vehicles on it, sold between January and September. This would mean an increase of 10.6 percent in the first nine months. Volkswagen published Audi sales yesterday, and Volkswagen Passenger Vehicle sales (see below) today. Looking at these numbers, the 6.8 million are quite possible.

Smiles in Ingolstadt and Wolfsburg, where Audi contributes 40 percent of Volkswagen Group’s profits: Audi’s global sales climbed 13.6 percent in September to 136,600 units delivered worldwide. 1,097,500 cars were sold in the first nine months, 12.8 percent more than in the prior-year period.

Volkswagen workers who make the Passat at the Emden factory in Germany are enjoying a mini-vacation. After the national holiday last Wednesday, which celebrated the fall of the wall and the re-unification, Volkswagen workers can celebrate falling sales of the Passat, and stay at home, says Germany’s Handelsblatt. Meanwhile, managers at Volkswagen are busy down–revising their production plans.

They called it the “Ferrari of the East”: The Melkus RS 1000 was East Germany’s only sports car, “powered” by a mid-mounted Wartburg 3-cylinder 2-stroke engine. Most cars had 1 liter engine, a few were 1.2 liter mills. Fitted with gullwing doors, it looked fast. 101 cars were made between 1969 and 1979 in the Dresden factory, to buy one, you had to race it. In 2009, Sepp Melkus, grand child of founder Heinz Melkus, resurrected the company and started building the Melkus RS 2000. No more, the company is bankrupt.

The seventh generation of Volkswagen’s venerable and best-selling hatch, the Golf, has barely been launched in Europe, and Volkswagen is already looking into producing it abroad. Volkswagen aims at two regions that usually prefer cars with trunks: China and America.

For most of the year, the German new car market could defy Europe’s eye-popping g-forces. No more. Germany is now officially going down with the rest of them. With 250,082 units sold in September, German new car sales dropped 10.9 percent as compared to September last year.

If the thought of a four-cylinder BMW gives you the creeps, then this will cause chronic dermatitis: BMW is thinking of putting three-cylinder engines into vehicles sold in the United States.