GM won't 'cut and run,' Akerson tells Opel staff

[DOCTOR]

FRANKFURT (Reuters) -- General Motors will neither sell its loss-making European unit Opel nor "simply close up shop and leave," CEO Dan Akerson told more than 5,000 staff in the brand's headquarters in Ruesselsheim today.

"As a global auto company, GM needs a strong design, engineering, manufacturing and sales presence in Europe. There's room for Chevrolet in Europe but Opel fulfills that role," he said in a copy of a speech.

"Recommendations that we 'cut and run' show you that some people simply do not see how important Opel is to our success," Akerson said.

Akerson has come under pressure from investors to divest or unwind Opel, which Morgan Stanley forecasts will post another $1 billion in annual operating losses on average through 2021 after $16 billion over the past dozen years.

GM, however, said last month it expects Opel to return to break-even levels by mid-decade.

Read more: http://www.autonews.com/article/2012...#ixzz2CK9HA300

[DOCTOR]

AND THE KOREAN TAKE IS:


GM Korea faces union pressure over speculation Cruze production will move to Europe

Read more: http://www.autonews.com/section/ANE&...#ixzz2CK9fUz1L

SEOUL (Reuters) -- Labor leaders at the South Korean unit of General Motors are putting pressure on the carmaker to reverse course and build its next-generation Chevrolet Cruze model in the country, over fears the company plans to build it in other regions, including Europe.

Union officials said GM Korea head Sergio Rocha told them on November 1 that the new Cruze will be produced in Europe and four other regions, sparking speculation that GM may move the output to Europe to help boost efficiency at its money-losing unit there.

Rocha has said the automaker has not yet decided which overseas factories will produce the new Cruze.

Union leaders also said they met with Rocha on Thursday and he reiterated that GM cannot retract the production decision.

"Should (GM) not withdraw the decision, it will face enormous resistance (from workers)," union leader Min Ki said in a statement, adding the union would do all it could to block the move, which it fears will cost Korean jobs.

The current Cruze model accounts for 50-60 percent of about 260,000 vehicles produced at GM Korea's plant in the southwestern city of Gunsan, which employs about 3,300 workers. The factory also builds the Chevy Orlando SUV and Lacetti small car. GM has two other car plants in South Korea.

The fully revamped Cruze model is expected to hit the market in the third quarter of 2014.

"The next-generation Cruze is the lifeline of Gunsan factory. The plant is flooded with anger about GM, which is trying to cut its lifeline," Min said.

The union has also called for meetings with GM's Tim Lee, the head of international operations and CEO Dan Akerson.

Rocha downplayed concerns about any plant shutdown or output cuts at the factory, according to the union.

"We will seek ways to maintain utilization rates at Gunsan plant by continuing to produce the current Cruze model," said Park Hae-ho, a spokesman for GM Korea.

A union spokesman, Choi Jong-hak, who previously threatened "a war" should GM Korea move output out of the country, said the union is seeking to garner support from politicians and Korea Development Bank (KDB), GM Korea's second-biggest shareholder.

GM has said previously that it wants to increase its stake in its South Korean operations. While it owns close to 77 percent of GM Korea, KDB's 17 percent holding gives the state-run bank the right to veto some decisions made by the automaker.

Opel assistance

In December, GM CEO Dan Akerson floated the idea that more cost-cutting at the company's Germany-based Opel unit could be accompanied by shifting production to the region from Asia to make European plants more efficient.

GM's European unit, which includes its Opel and Vauxhall brands, has lost money for 12 consecutive years, and the company is scrambling to cut costs and boost efficiency in that region. It said on Oct. 31 that it expected a loss of as much as $1.8 billion in Europe this year and was targeting a return to breakeven in the region by mid-decade.

Automotive News Europe contributed to this report
Contact Automotive News

Read more: http://www.autonews.com/article/2012...#ixzz2CK9xGwhU

[FanOfDurant]

What does Dan tell his shareholders? What does Dan tell the US Treasury? 'General' motors better get their act together if they insist on surviving as is. Without anymore government funding that is. From any and all...

[CaddyLac10]

GM needs Opel's European presence to maintain a foot in the mix, but I’m sure GM would have easily dumped Opel already if they had a greater presence and infrastructure there.

Opel certainly makes some great products and has some great designs, but they don’t offer anything GM couldn’t do on their own if they really wanted to. I would take Opel's designers however

In my opinion, it’s only a matter of time that something gives if Chevy plans to make a name in Europe. GM is not going to have two overlapping brands there.

Either get rid of Opel at some point in time or move them upmarket and make them more upscale like Buick is for NA. Opel could be Europe’s Buick for GM.

We’ve heard all the talk about Buick and Opel joining on a serious level at some point…so when or is it going to happen?

[mchicha]

UAW should get a shot to build export units. After all US taxpayers saved this company for what? Each Union should justify why they should build it, and I beleive UAW can produce the car at the best possible price and export.

They (UAW) bid to build the Sonic and succeeded, surely they can bid for Global Cruze work too.

[baloo]

In my opinion, it’s only a matter of time that something gives if Chevy plans to make a name in Europe. GM is not going to have two overlapping brands there.

Chevy has been planning to do that for a number of years now. Fact is, the brand is still stuck in the 1.x% range in terms of market share, selling cars with 4 digit price tags and battling with the likes of Suzuki.

[mchicha]

Chevy has been planning to do that for a number of years now. Fact is, the brand is still stuck in the 1.x% range in terms of market share, selling cars with 4 digit price tags and battling with the likes of Suzuki.

The reason is that in reality, Chevrolets European offerings are stripper Models. For US the Cruze and Sonic got sound deadening, better powertrains at launch, upgraded electronics, upgraded suspensions and a whole lot more airbags and stuff..
The US Cruze is a totally different car from the Global Cruze. Its virtually between Lexus and Toyota if you knaa mean

Europe Cruze LTZ


US Cruze 2LT

[EcoBustier69]

Ford is using excess capacity in Europe to export the Transit Connect Van and Tourneo Wagon to US. Who nows maybe even the Galaxy might get a shot over here.

That and closing 3 factories will get their Europe capacity utilization up to about 80-85%, still fairly low but a great improvement over 50%.

Just a few years ago, they were talking about building all new Kugas in KY and exporting them...my, my how 3 years changes everything.

Let's see if GM follows Ford's lead in this regard.

[AMERICA 123]

You really have it backwards.

Ford's the johnny come lately - and they do not have half the sophistication in their plan that GM is tryin' to make work going forward.

GM is also making a good attempt that is much stronger than Ford's announced plans so far to retain share over there.

And yep, also improve the quality of that share.



______________


They ought to consider..... letting Opel handle all the Chevrolet and Buick space that each handle here in a sense.

[baloo]

The reason is that in reality, Chevrolets European offerings are stripper Models. For US the Cruze and Sonic got sound deadening, better powertrains at launch, upgraded electronics, upgraded suspensions and a whole lot more airbags and stuff..

Chevrolet Europe sells strippers at bargain basement prices because that's their market. Their competition is Kia and Dacia, not Ford or VW, and if they didn't undercut mainstream brands on price, Chevy Europe would struggle to sell anything at all.

[BlackGTP]

So Korea is making it a Korea vs Europe. If the Korean units get too militant it wouldn't surprise me if GM starts to move production elsewhere - Korea on it's own isn't that huge of a market and GM can build elsewhere in Asia to service the region.

[steve333]

The reason is that in reality, Chevrolets European offerings are stripper Models. For US the Cruze and Sonic got sound deadening, better powertrains at launch, upgraded electronics, upgraded suspensions and a whole lot more airbags and stuff..
The US Cruze is a totally different car from the Global Cruze. Its virtually between Lexus and Toyota if you knaa mean

Europe Cruze LTZ


US Cruze 2LT

The NA Cruze 1LT was dumbed down and removed the watts link. The top Models are better than the overseas Cruze. Reliability, however, is another story

[Neanderthal]

Rutt ro! With a promise like that, they're skrood!!

[richmond2000]

The NA Cruze 1LT was dumbed down and removed the watts link. The top Models are better than the overseas Cruze. Reliability, however, is another story

I had a chance for a "ride N drive" of a korean 2LT 1.8 Cruze and have to say it is WAY "cheaper" feeling then a NA market cruze ECO

[AMERICA 123]

When the new Cruze arrives...... which ' I hope ' will not be spaced down further from the new Malibu....... there will very possibly be some real life left in the old Cruze.


China as just one of many - is a no brainer but Korean sourcing would seem at least somewhat problematic unless they can work something out ........


Can't quite see a Cruze 'Classic' for here although....... that would depend a bunch on what the new one is really all about.