GM hits the brakes on Opel deal

[YupYupYup]

Magna is starting to find out the complexities and difficulties of running a full auto company. This is why Magna has never been a FULL company; it has tried in the past, but never succeeded.

[smithb]

I wish they would just turn off the deal. GM has enough money (they're not even taking all the gov't offered) to hang on for another year. Selling will give up too much technology and may limit some of the great cars designed over there from coming here. The Opel Voltech is sweet and would make a great Saturn, I mean Buick.

[fp115]

Originally Posted by web_captain

Ah, ah, ah! ... not political reasons ....
Germany's gov.t ordered, yes practically ordered GM.NA to consider only and only a deal with Magna: for EU this is a blackmail due to political reasons.
Oh yes, first words from EU are soft, the harder ones will follow.
Why?
Just to let GM.NA the time to consider its suicide in the Magna deal for Opel.
However everything is possible at this time, considering the 'power' of GM.NA management

What does GMNA have to do with this? GM Company are the ones dealing with the sale, GMNA has NOTHING to do with this. If anythign GME would be dealing with the sale if you want to get into a regional GM business.

[mkwelbornjr]

Since when is Opel so bad that it has to be sold...it was GMs best division and the best products came from Opel roots.

[fp115]

Originally Posted by mkwelbornjr

Since when is Opel so bad that it has to be sold...it was GMs best division and the best products came from Opel roots.

The finances for Opel are terrible, the company's finances exceed what any company its size has. It requires a major investment to restructure and refocus the company. For GM to keep it, it will need to invest a lot of capital and will also need to get te $4b loan from the German government.

[AMERICA 123]

Originally Posted by fp115

Do you not pay attention to the news? The EU made a report that gave permission to keep Opel and be eligible for the funds from the German government. Now GM gets to review the investment and see if they would rather keep it or sell it off and let Magna deal with the issues.

Originally Posted by web_captain

Ah, ah, ah! ... not political reasons ....
Germany's gov.t ordered, yes practically ordered GM.NA to consider only and only a deal with Magna: for EU this is a blackmail due to political reasons.
Oh yes, first words from EU are soft, the harder ones will follow.
Why?
Just to let GM.NA the time to consider its suicide in the Magna deal for Opel.
However everything is possible at this time, considering the 'power' of GM.NA management

Originally Posted by boz2730

What a cluster f#@%.

Originally Posted by YupYupYup

There is more here than meets the eye...I said all along that Opel was just a show for the auto task force...But Lutz and Co. really did not want to part with it...Just look at the product pipeline that is being used for other GM brands...

Keep it!

All of you are on the right track about this.

On the 'face of it', this is about the EU's '- Commission' being concerned with the German National Government's 'possibly' biased and in their own words politically motivated 'brokering' of the deal.

More formally, they have basically questioned 'GM' on if political considerations are involved AKA political pressure.

'GM' is not the villain or the problem here - they're just stuck in between with at least one hand tied behind their back - quite possibly in a no real win possible situation.

OFFTOPIC : Some of you are so negatively biased about GM I swear, if the second coming came today you'd hold GM responsible for those that don't make the cut.

[web_captain]

Originally Posted by fp115

What does GMNA have to do with this? GM Company are the ones dealing with the sale, GMNA has NOTHING to do with this. If anythign GME would be dealing with the sale if you want to get into a regional GM business.

I think GME is not a separate entity but it belongs to GM in the states!
Otherwise there should be no need to 'disturb' the states ....
And the IPs?
Yes, everything belongs to GM.A . Call it GM Company, or Gov.t Motors if you like, but the final decision on Opel's fate is only and only in american hands of the original owner, and nothing in EU

[Chaz_23]

What is better for Opel workers?
I suspect in the short term i'd be less bloody if GM keeps it. But who knows about GM long term. Opel might go the way of Olds/Pontiac/Saturn, since GM doesn't know how to make money on cars.
With any other buyer it'd be massive layoffs and plant closures instantly and probably also a questionable future.

[T3000]

GM fooled the public for nearly a year. They should not expect anybody to trust them...

[mbukukanyau]

Originally Posted by mkwelbornjr

Since when is Opel so bad that it has to be sold...it was GMs best division and the best products came from Opel roots.

Chevrolet is GM’s best brand. That said, in Europe its Opel. GM does not need to sell Opel. I do not think they want to. They are probably looking for a way out of the sale.

[web_captain]

Originally Posted by T3000

GM fooled the public for nearly a year. They should not expect anybody to trust them...

At the beginning of the 'saga', FIAT's CEO Marchionne presented the best rescue plan from an industrial/economic point of view. An alliance with FIAT Auto, clearly without debts: and FIAT ready to contribute also with more money than what offered by Magna/Russians.
Clear ideas in mind on what to do, in Italy and in Europe, in optimizing plants & jobs, so to start making money very soon.
Of course with the italian carmaker well supported by a pool of main eu banks: and the german gov.t should have to do its part with loans, as specified months ago.

Thus an alliance FIAT/OPEL could be done at any time if GM accepts the deal.
FIAT & CHRYSLER in Marchionne have an excellent CEO: what about GM?

However IMHO a deal with Magna/Russians remains the worst possible solution for GM

[fp115]

Originally Posted by web_captain

I think GME is not a separate entity but it belongs to GM in the states!
Otherwise there should be no need to 'disturb' the states ....
And the IPs?
Yes, everything belongs to GM.A . Call it GM Company, or Gov.t Motors if you like, but the final decision on Opel's fate is only and only in american hands of the original owner, and nothing in EU

Haha WHAT?!

GMNA, GME, LAAM,... are all a part of GM Co.

GME is the major negotiator in these talks, lead specifically by John Smith.

Learn how the company works before spewing your mouth, you only look foolish.

[Joe in T.O.]

I wish GM could keep Opel. The new Astra is getting rave reviews.

[fp115]

Originally Posted by Joe in T.O.

I wish GM could keep Opel. The new Astra is getting rave reviews.

Even if GM sells it, the products are still all coming regardless.

[SimonDavid]

Originally Posted by AMERICA 123

All of you are on the right track about this.

On the 'face of it', this is about the EU's '- Commission' being concerned with the German National Government's 'possibly' biased and in their own words politically motivated 'brokering' of the deal.

More formally, they have basically questioned 'GM' on if political considerations are involved AKA political pressure.

'GM' is not the villain or the problem here - they're just stuck in between with at least one hand tied behind their back - quite possibly in a no real win possible situation.

OFFTOPIC : Some of you are so negatively biased about GM I swear, if the second coming came today you'd hold GM responsible for those that don't make the cut.

There's alot of EU politics in this.

Germany has become more nationalistic under Merkel, for the first time basically since WW2 France and Germany have leaders who dont much care for each other. Remember Merkel is from Eastern Germany, she's not a Rhineland Francophile.

Germany refused to launch a stimulus program during the financial meltdown, saying the other EU countries needed to get their own houses in order. They have a growing strategic interest in Russia which supplies most of their energy. Opel is a further development of "Germany comes first".
Given that everyone else is broke there's not much they can do about it. The EU is trying to slap them on the wrist but Germany can rightly turn around and say "we provide most of the EU's funding, dont bite the hand..."