Opel’s Moment of Truth

Rick Wagoner’s successor, Fritz Henderson, means there’s a glimmer of hope for General Motors’ daughter, Opel.

The U.S. government has just raised the survival stakes for struggling automakers, GM and Chrysler. The way General Motors CEO Rick Wagoner was more or less run out of office by the government shows that Obama is absolutely set on sweeping Detroit clean with an unforgiving broom. Both companies will have to accept cutbacks and suffer personnel losses that were unthinkable even just weeks ago.

In spite of that, Obama’s turnabout isn’t a harsh reaction to the companies’ restructuring plans. He will doubtless try everything in his power to save the heart of the American automobile industry. His comments about the dangers of bankruptcy are meant to bring about two things: comprehensive concessions from the autoworkers unions who are still riding the high horse, and a realistic change in thinking from management.

For GM’s daughter, Opel, Wagoner successor Fritz Henderson represents a glimmer of hope. Not only because he is familiar with Opel from his days as Chief of GM’s European operations, but because in contrast to the reactionary die-hard, Wagoner, who fought to the end to keep producing huge vehicles, Henderson is a very pragmatic and market-oriented manager. He will be better able to judge the merits of smaller, fuel-efficient European cars. Above all, he is known for his willingness to listen to facts and opposing opinions before reaching decisions. Perhaps that’s exactly what Opel needs for her future.