Opel Is Unmarketable

The parent company of Opel plays an unacceptable game again. Does General Motors want to get rid of the German manufacturer or not? The employees must be apprehensive. Opel is, however, indispensable for the American group of companies — and the consideration of a buyer should not even be in question.

Once again General Motors wants to allegedly sell the financially broke branch company Opel. Still, that had not been confirmed by the corporate headquarters in Detroit. The fact alone, however, that GM does not strongly deny the media reports indicates the Americans’ main position regarding the issue. The concerns of Opel employees are evidently of little regard to the Americans. Thousands of workers in Germany are apprehensive about their jobs — as has so often been the case in past years.

GM itself even keeps the new boss, Karl-Friedrich Stracke, in the dark. He must give a clear answer at an employees’ meeting concerning whether or not the company will be sold. He speaks of “speculations.” Apparently, he does not know this himself.

In doing so, G.M. should deal very carefully with the German division. Opel is the heart of a group of companies' development work — above all for the modern, and important, small car. Many ideas, research approaches and models come from Rüsselheim — the Chevrolet Volt is nothing more than an Opel Ampera. In addition, Buick models are based on Opels.

Because of expensive factories in Western Europe, the manufacturer deals with high costs. Opel made up for that, but it occurred through job losses, the sale of factories and flexibility. The Germans could bring in a profit again in the next year.

The G.M. bosses must ask themselves whether they really have a plan. With a manufacturer like Opel, one cannot easily throw the corporation overboard like Saab or Hummer — or negotiate as was done with Saturn or Pontiac.

Part 2: What Is on G.M.’s Mind?

Perhaps Detroit is — freshly returned to the stock market — pursing the motto: away with everything that cannot bring in money. But that would be deemed too short-sighted. Perhaps this would aid the company in getting back on its feet, especially in regard to the terrible market price. In the long run, a pullout of G.M. by Opel would be costly and dangerous for the Americans. General Motors cannot forgo the research skills of the German engineers.

And who would buy Opel? V.W.? Even if the group of companies is accustomed to success, it might not be trustworthy. Wolfsburg itself should not go so far. Nothing suits Opel from this suggested list of potential buyers. Fiat? Not after the Italians failed in the first bidding round two years ago. Renault? Peugeot? Magna again? All are unimaginable. Perhaps the Chinese should still be considered. But it must also be questioned, however, whether they have an actual interest in the brand or only want access to the market in Western Europe. Opel is unmarketable!

With respect to this whole problem, G.M. does the largest disservice to itself. First, redevelopment successes are just beginning to show. Opel employees must work extra shifts so that the demand can be met. Now G.M. has rendered the situation worse again. But who would buy a car without knowing where to have it repaired in the future? Such an action would ruin the Opel brand, which can't be GM's intention — unless it actually doesn't have any more interest in Opel.