German solar company offers 1b euro for Opel

[cdxi]

Well, in this economic fray you've got to expect all sorts of whacked out scenarios to "save" the struggling companies

http://www.autoblog.com/2008/11/19/german-solar-energy-company-offers-to-buy-opel-from-gm/

[poita]

if this did go ahead, would it possibly mean opel being there own brand in australia?
and importing more models here? *crosses fingers*

[noobie]

Not as out of whack as analysts may think.

When companies get into as much financial shit as GM has they can offload some brands at next to zero dollars.

Potentially they could be offloading a liability which may in-fact save their books from bleeding more money.
The money component of a billion that has to go to workers as part of the compensation will end up happening in the future anywayas GM hold all the liabilities for the workers and the future payments.

Just like when GM sold it's financing arm to citibank, they offloaded a massive money making arm of theit business that had inherent risk, maybe a good idea that they did with what's happening now.

[rjastra]

if this did go ahead, would it possibly mean opel being there own brand in australia?
and importing more models here? *crosses fingers*

It could mean no models for Australia.

[Ice]

Agreed! wouldnt that be something special to see OPEL dealerships around the place.

[Calibrated]

It could mean no models for Australia.
stfu :mad:

[Huhness]

As if GM would sell OPEL. It is probably the only arm of GM that isn't losing billions a week.

And if you actually read the article.. GM would make $0 from this deal after having to pay its workers compensation.

[poita]

It could mean no models for Australia.

because we have how many new models here now? a whole of one

[rjastra]

stfu :mad:

I'll leave you in your Opel fanboy fantasy world :P

[Calibrated]

I'll leave you in your Opel fanboy fantasy world :P
that would be nice, hopefully you'll leave this forum too.

[Ice]

Boys boys !

[bornwild]

Yeah this is quite a ridiculous offer I think. These guys don't have the money to own & operate a company as large as Opel.

[Calibrated]

Yeah this is quite a ridiculous offer I think. These guys don't have the money to own & operate a company as large as Opel.
less than no chance. either way, GM would be crazy to offload Opel. besides the fact that they are adimant that Opel is NOT for sale, kinda shows they have vested interest in it.

[Shaun]

less than no chance. either way, GM would be crazy to offload Opel. besides the fact that they are adimant that Opel is NOT for sale, kinda shows they have vested interest in it.

Not that crazy. They are struggling in the USA. We all know this. It could be a good cash injection to keep them going for the time being.

Daimler AG sold Chrysler last year to a company thats not in the motor vehicle game what so ever. Anything is possible if the right deal is struck.


As for opel being sold in Australia. There would be an Agreement put into place so GM could still sell the product more then likey.

[James T]

But as the article said, pretty much all of the profit GM would make from the sale would be spent on compensation for the Opel employees - so they would walk out of the deal minus Opel, and with no more money. Seems like they would have to be pretty stupid to me...

[rjastra]

The answer to GM's problems is to ditch one or two US brands (GMC, Pontiac) and streamline their range globally. But, the manufacturers are being dragged down (in the USA) by the unions and their retailers.

Chevrolet, Cadillac and Saturn for the USA, Opel for Europe and Buick/Daewoo/Holden for Asia/Pacific. Model share as required.

[glider]

As for opel being sold in Australia. There would be an Agreement put into place so GM could still sell the product more then likey.

What about the Izuzu D-Max? Not trying to argue but past history shows the opposite

[stevedee3]

because we have how many new models here now? a whole of oneDon't forget the Combo!

[poita]

when was the last combo released?

[stevedee3]

when was the last combo released?OK, so it's not new - but it is the only other Opel that's still on sale in Australia.

[poita]

VXR/AH/Nurburg

[Black Nugget]

I agree with rj astra on streamlining, the us big three have brought this on themselves.

If you look at the more successful companies such as Toyota, VAG BMW Merc and most of there cars vary little globally with only a few extra models for niche markets such as the ultra effcicient city cars in europe and so on.

Where as Gm and Ford for example have completely segregated opperations and way too mcuh badge engineering.

However its a tricky situation to solve. While it may be easy for us to say GM brought it on themselves by not acting like its more efficient stablemates the over regulated nature of the US industry helped create the problem in the first place, making it hard to segregate the US government and the manufacturers.

[rjastra]

However its a tricky situation to solve. While it may be easy for us to say GM brought it on themselves by not acting like its more efficient stablemates the over regulated nature of the US industry helped create the problem in the first place, making it hard to segregate the US government and the manufacturers.

Apparently it cost US 1 Billion for GM to ditch the Oldsmobile brand. The dealers sued!

[digifish]

I agree ...the us big three have brought this on themselves.

1. If you look at ...Toyota, VAG BMW Merc ... cars vary little globally with only a few extra models for niche markets

2. Where as Gm and Ford ...and way too mcuh badge engineering.



This doesn't make sense, badge-engineering IS the method by which you homogenize global marques.

digifish

[rjastra]

This doesn't make sense, badge-engineering IS the method by which you homogenize global marques.

digifish


Thats true... think Audi, VW, Skoda, SEAT. Essentially the same company.

[Black Nugget]

This doesn't make sense, badge-engineering IS the method by which you homogenize global marques.

digifish

Yes to an extent. However the Us market has gone way too far.

In europe for example VW skoda, seat etc are positioned differently with varying designs and each brand far more prominent in their domestic market. Again many of these brands exist due to government based subsidies.

However in the US - a single country - to have three tiers of the same product the issue becomes more apparent. If you look at the products of lincoln, mercury and ford or Chevy, GMC, Saturn, cadillac etc the merits of each brand are hard to see highlighting the rationale for streamlining.

[poita]

Now Opel dealers are in on it...

http://www.forbes.com/markets/2008/11/21/opel-gm-update-markets-equity-cx_je_1121markets14.html



After SolarWorld announced its much-derided plans to bid for four of General Motors' German plants, some were wondering what was next. Now, the Die Welt newspaper has reported that 1,000 Opel dealers met on Nov. 18 to discuss a possible bid for GM's division.

An Opel dealer in Stuttgart said the idea was "under discussion and taken seriously" by dealers, and that it was "not impossible" in an interview with Automobilwoche magazine. Paul Schafer, general manager of Opel Staiger in Stuttgart, was quoted as saying that a bid was "under serious consideration" and that the necessary funding could be raised.

"It shows how highly appreciated our brand is," said Frank Klass, a spokesman with GM Europe, refering to the reports that Opel dealers might buy the unit, but without commenting further to Forbes.com.

Analysts too were bewildered by the announcement. "Opel buying GM Europe doesn't make much sense," said Tim Schuldt, an analyst with Equinet. "I don't see how some small dealers buying into GM could work. The dealers don't have the financial strength that's required nor do they have the mass production capacity that's required."

"Besides, these are bad times not just for General Motors (nyse: GM - news - people ) but also for Opel as the industry struggles with the financial crisis," Schuldt said.

On Wednesday, shares of solar-energy company SolarWorld tanked after it announced plans to buy four plants from General Motors' German subsidiary Opel and create Europe's first "green" auto firm. (See "Solar-Powered Opel? Not Likely.")

Opel had previously said it would not share any funding it received from the German government with its ailing parent company. (See "Opel to GM: Hands Off Our Bailout Funds.") German Chancellor Angela Merkel, Finance Minister Peer Steinbrueck and Economy Minister Michael Glos met with top Opel executives to discuss the company's request for loan guarantees on Monday.

Opel has said it was seeking about 1 billion euros in government aid because its financial situation was threatened by the troubles of its parent. On Friday, Merkel said the German government would aim for a decision on any Opel support by Christmas.

Opel said that despite the difficulties its partner GM is facing in the U.S., it had no plans to cut jobs in Germany by 2010. In an interview with Autogazette, the company's chief executive Hans Demant said Opel would adjust its production to the market conditions without resorting to layoffs.

Automakers in both the United States and Europe are facing slower sales as faltering economies spell weaker consumer demand and a lack of confidence in the financial sector affects their own financing. (See "Credit Crunch Hits European Autos.")