Opel raises cash by selling facilities to GM parent

[nadepalma]

Opel raises cash by selling facilities to GM parent
By Andrew Ganz
Friday, Dec 21st, 2012

In a bid to raise much-needed capital, Opel will sell six of its facilities in Europe to its parent company, General Motors, for an amount said to keep the German automaker afloat for at least the next few years.

GM owns Opel and Opel owns production and engineering facilities scattered across Europe, but what Opel owns doesn't directly belong to GM. Opel is operated as an independent company, not as a division like Chevrolet is to Buick. As a result, the German brand is essentially the master of its own domain, even though GM relies heavily on it for global product engineering and development.

CONTINUE AT: http://www.leftlanenews.com/opel-rai...gm-parent.html

[nadepalma]

Interesting. I wonder if this is the "first step" in a long process of making Opel more of a division like Chevy and Buick and less of a stand alone subsidiary? Or is this a legal move to try and give GM leverage (or avoid a penalty of some sort) in dealing with labor issues around Europe?

[mchicha]

Opel better sell Adam, corsa and Opc coupes to Buick.

[ne_one]

Interesting. I wonder if this is the "first step" in a long process of making Opel more of a division like Chevy and Buick and less of a stand alone subsidiary? Or is this a legal move to try and give GM leverage (or avoid a penalty of some sort) in dealing with labor issues around Europe?

Good question.

I suspect that GM can't simply acquire the assets and then divest of them without contravening existing arrangements with the union.

[Kennyboy]

The system is setup very similar to GM used to own SAAB. SAAB had it's own independent board, facilities, and technology centers. I suspect that GM is using this as a bargaining chip with the unions as they can now legally shut down the plants without Opel's approval.

[OliverH]

Opel raises cash by selling facilities to GM parent
By Andrew Ganz
Friday, Dec 21st, 2012

In a bid to raise much-needed capital, Opel will sell six of its facilities in Europe to its parent company, General Motors, for an amount said to keep the German automaker afloat for at least the next few years.

GM owns Opel and Opel owns production and engineering facilities scattered across Europe, but what Opel owns doesn't directly belong to GM. Opel is operated as an independent company, not as a division like Chevrolet is to Buick. As a result, the German brand is essentially the master of its own domain, even though GM relies heavily on it for global product engineering and development.

CONTINUE AT: http://www.leftlanenews.com/opel-rai...gm-parent.html

That's the planed shutdown of the company OPEL. An company without assets has nothing to get credits (for securing financing). OPEL will only exists as a brand in the GM economy system.
The raised cash has to been paid in the end to the license company and development centers of GM. How much do they'll pay with this back lease model? So there will be no real cash at OPEL. It's time to say goodbye.

The take over of the assets is a clear statement for European governments: This is an US based company, so they should solve the problems in their facilities. Not my department.

Money down the toilet.

[OliverH]

The system is setup very similar to GM used to own SAAB. SAAB had it's own independent board, facilities, and technology centers. I suspect that GM is using this as a bargaining chip with the unions as they can now legally shut down the plants without Opel's approval.

GM doesn't want to be back in the situation when German government was an "owner" of the facilities some time ago for credits they gave to OPEL. GM paid back money as fast as they could to get back control. GM don't want anyone in charge to control decisions and strategy.

Which facilities are sold to GM?

I bet on:
Rüsselsheim
Kaiserslautern
Vauxhall plants
Dudenhofen test centre close to Rüsselsheim/ Frankfurt

[OliverH]

The system is setup very similar to GM used to own SAAB. SAAB had it's own independent board, facilities, and technology centers. I suspect that GM is using this as a bargaining chip with the unions as they can now legally shut down the plants without Opel's approval.

GM always tried to be the owner of technology departments like Powertrain research & development. They all were renamed to "GM Powertrain [xyz] AB/ GmbH/ AG and whatever".
GM used european work to renew their own platforms.

[rsbaker]

Opel raises cash by selling facilities to GM parent

GM owns Opel and Opel owns production and engineering facilities scattered across Europe, but what Opel owns doesn't directly belong to GM. Opel is operated as an independent company, not as a division like Chevrolet is to Buick. As a result, the German brand is essentially the master of its own domain, even though GM relies heavily on it for global product engineering and development.

CONTINUE AT: http://www.leftlanenews.com/opel-rai...gm-parent.html

This could be part of the problem. If Opel/ Vauxhall were just divisions like Chevrolet Buick and Cadillac Then GM could run it's European operations much leaner and flexibly. GM can still have a European based product engineering and devolopment facility just as every major region does now in North America, Brazil, China and Australia but Opel/Vauxhall should not have the high expense and bureaucracy of a stand alone company. I think we might still have Saab if it had been run more like a division and not as a quasi autonomous subsidiary. If it is chaper to produce Chevrolets, Opels, and Saabs in the same factory for the Eauropean market then that is what GM should have done. Today it is astonishing how slowly GM is integrating its production. It seems there are still Opel/Vauxhall factories and Chevrolet Factories in Europe. There should only be GM factories building whatever is needed wherever its needed. The best example of this integration and flexability is the Volt Hamtramck Plant in Michigan. When Volt production started Hamtramck was also building Buick Lucerne and Cadillac DTS, Those models are now being replaced by the new 2014 Impala and the Cadillac ELR.

[VS Ute 5Litre]

If Opel were a division like Chev and Buick they could also run them into the ground like Pontiac and Saturn

[OliverH]

This could be part of the problem. If Opel/ Vauxhall were just divisions like Chevrolet Buick and Cadillac Then GM could run it's European operations much leaner and flexibly. GM can still have a European based product engineering and devolopment facility just as every major region does now in North America, Brazil, China and Australia but Opel/Vauxhall should not have the high expense and bureaucracy of a stand alone company. I think we might still have Saab if it had been run more like a division and not as a quasi autonomous subsidiary. If it is chaper to produce Chevrolets, Opels, and Saabs in the same factory for the Eauropean market then that is what GM should have done. Today it is astonishing how slowly GM is integrating its production. It seems there are still Opel/Vauxhall factories and Chevrolet Factories in Europe. There should only be GM factories building whatever is needed wherever its needed. The best example of this integration and flexability is the Volt Hamtramck Plant in Michigan. When Volt production started Hamtramck was also building Buick Lucerne and Cadillac DTS, Those models are now being replaced by the new 2014 Impala and the Cadillac ELR.

Chevrolet factories in europe?

[OliverH]

If Opel were a division like Chev and Buick they could also run them into the ground like Pontiac and Saturn

There were Oldsmobile, Saab also. There's know ledge/ experience around.

http://en.wikipedia.org/wiki/General...ntinued_brands

[rsbaker]

Chevrolet factories in europe?

Nov. 7 2008 (Bloomberg) -- General Motors Corp., the world's biggest carmaker, opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America.

The plant in the Shushary district on the outskirts of St. Petersburg will produce 70,000 Chevrolet Captiva sport-utility vehicles...

I stand corrected if this or other factories do not produce Chevrolets exclusively. It has been my understanding that Captivas and Cruzes were being produced in europe and the Russian plant is probabaly producing Antera as well.

[the_smurf2008]

[QUOTE=OliverH;2622111]Chevrolet factories in europe?[/QUOTE

UUMMMMM>>>>>>

[OliverH]

Nov. 7 2008 (Bloomberg) -- General Motors Corp., the world's biggest carmaker, opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America.

The plant in the Shushary district on the outskirts of St. Petersburg will produce 70,000 Chevrolet Captiva sport-utility vehicles...

I stand corrected if this or other factories do not produce Chevrolets exclusively. It has been my understanding that Captivas and Cruzes were being produced in europe and the Russian plant is probabaly producing Antera as well.

Russia? Hmmm..
Russia is currently a good place for a plant in the "good partnership" US/ Russia. Everyone followed Putins press conference this week will trust in this region.

But thanks for the info. Hadn't heared about before.