A German view of the Opel-Magna debacle

[chevydlrmn]

Originally Posted by crooner214

BTW, Toto, that pic made me laugh out loud, and I'm at home alone. My neighbors must think I'm batty!

It looks as if she is trying to make a salute like a former German leader, that I don't want to mention, but her arthritis prevents her ability to get it right.

[ChevyRules]

Originally Posted by stormwatcher

Dishing out revenge for the emergency bridge loan that the German government provided to keep Opel afloat and without which Opel would already be in bankruptcy and likely out of GM's control forever?

People have some awfully strange ideas floating around on this subject. Without the generosity of Korean, Canadian, German and US taxpayers, GM would be toast by now. A little less hubris might be in order.

The hassle they made GM go through was ridiculous. They first stated, GM needed to find an investment partner in Opel in order to get the loan. Then they said GM had to sell majority stake in Opel. Then they said sell only to Magna and not RHJ with no buy back option. I seriously would not be surprised that the job cuts coming is mostly German workers and German plants.

[ne_one]

Originally Posted by Bravada

Merkel is the un-hooded version of Palpatine, simply!

Well played.

[vonboogie]

the collapse of the deal has nothing to do with the the german government, but with gm and Chairmen Obama (we know who calls the shots at GM). GM did not want to give up IP rights to the Russians as Megna demanded. If GM let Megna take the IP rights then the deal would have gone on. So basically it would seem that GM can not develop on their own from their US divisions IP and had to purchase it from Opal by buying Opal in the first place as many of the GM FWD products were developed under Opal and not the US divisions. I think it is about time GM consolidate all design and engineering to the USA in the form of a wholy owned division that would be responsible to sell to each division and world wide divisions the platforms that they can use. GM shouldmerge holden in chevy and call it Chevy around the world.... Opal/vauxhall should be renamed Buick. Caddy should be merged into Buick as well.

[stormwatcher]

Originally Posted by ChevyRules

The hassle they made GM go through was ridiculous. They first stated, GM needed to find an investment partner in Opel in order to get the loan. Then they said GM had to sell majority stake in Opel. Then they said sell only to Magna and not RHJ with no buy back option. I seriously would not be surprised that the job cuts coming is mostly German workers and German plants.

Nobody in their right mind would squander $6 billion of taxpayers money on a strip-and-flip operation like RHJ.

[ChevyRules]

Originally Posted by stormwatcher

Nobody in their right mind would squander $6 billion of taxpayers money on a strip-and-flip operation like RHJ.

The intention being RHJ was a tool for GM to get the aid and eventually buy back Opel as the RHJ deal had a buy back option.

The Germans intentions were simple: Get Opel out of GM hands by any means necessary.

[stormwatcher]

Originally Posted by ChevyRules

The intention being RHJ was a tool for GM to get the aid and eventually buy back Opel as the RHJ deal had a buy back option.

The Germans intentions were simple: Get Opel out of GM hands by any means necessary.

The German government was trying to best protect the $6 billion in taxpayers money they were going to lend. No government in the world would give money to an outfit like RHJ who would have been a far riskier proposition then Magna.

[ChevyRules]

Originally Posted by stormwatcher

The German government was trying to best protect the $6 billion in taxpayers money they were going to lend. No government in the world would give money to an outfit like RHJ who would have been a far riskier proposition then Magna.

Opel would not have been in RHJ hands for long. As I said in my post, GM had the intention of buying Opel back. When RHJ was rumored to be GM's preferred bidder due to the buy back option, Germany then said in order to get the loan, the deal could not have a buy back option for GM.

Again, it is very clear that the Germans wanted Opel out of GM's hands and make sure GM could not get Opel back.

[mbukukanyau]

Ze German has been cornered by Ze American, again...

[mpsrent]

Why so much anomosity towards the German government? They were only trying to protect the interests of their taxpayers at a time when GM had made it clear they did not want Opel anymore.

I personally beleive this is good news for Magna who can concentrate on their core business and won't face a conflict of interest with the clients they provide parts for. In the long run, I think Magna is the real winner here for they may have ended up with a financial pit that now will remain in GM's hands to absorb.

[mbukukanyau]

Originally Posted by mpsrent

Why so much anomosity towards the German government? They were only trying to protect the interests of their taxpayers at a time when GM had made it clear they did not want Opel anymore.

I personally beleive this is good news for Magna who can concentrate on their core business and won't face a conflict of interest with the clients they provide parts for. In the long run, I think Magna is the real winner here for they may have ended up with a financial pit that now will remain in GM's hands to absorb.

simple, viii are ze americans, and zeei are ze germans, and viii vant to keep opel.

[Burnout Czar]

Originally Posted by jcgable

The German business model has many attractive benefits, as does the American business model. This isn't a forum to debate the macro-economic policies of governments.

Are you a mod? I didn't think so, so don't me tell what I can can't post. What advantages does the German business model have? A 35 hr work week, the whole month of August off plus numerous other holidays, Uncompetitive labor structure, arrogant attitudes? I deal with this German business on a daily basis and if it wasn't for the fact we sell a lot of product in Germany we would be done with them, everyone at my company agrees they are a pain the a$$ to work with.

Quite frankly the German government never should have messed with GM, I mean this is General Motors were talking about, largest auto maker in the world. If I was GM I would keep the tech center in Russelheim and close all the German manufacturing facilities and move them to Belgium, Poland, Spain, and Britain. The British and Polish in particular seem very excited to see Opel staying with GM. Or better yet build the Opel's in South Korea. The Germans need to learn the world does not revolve around them.

Opel: Wer Lieben Autos!!!

[ChevyRules]

Originally Posted by mpsrent

Why so much animosity towards the German government? They were only trying to protect the interests of their taxpayers at a time when GM had made it clear they did not want Opel anymore.

GM preferred to keep Opel, but Opel needed a loan to stay out of liquidation. It was first an investment partner for GM to get the loan. Then it was to sell majority of Opel. Then it was only sell to Magna to get the loan with no buy back option.

That is why there is animosity.

[Burnout Czar]

Originally Posted by mbukukanyau

Ze German has been cornered by Ze American, again...

Originally Posted by mbukukanyau

simple, viii are ze americans, and zeei are ze germans, and viii vant to keep opel.

Opel: American since 1929 (Except when the Nazis stole it from us, you do remember the Nazis don't you?)

Americans 3 (WWI, WWII, Opel)
Germans 0

[plane]

Originally Posted by mgescuro

But alas, many people will start doing so anyways, whether or not they are educated in macroeconomic theory.

And IT folks that have no business discussing or even contemplating marketing.......