GM aids Opel by booking Russian profits at loss-making unit

[Theo]

http://mobile.reuters.com/article/idUSBRE99H0GQ20131018?irpc=932

Interesting read... Well for some.

"....GM's Buick builds the Opel Insignia in China, badges it as a Buick Regal, and books the profits, leaving Opel with only niche products to sell, such as its Astra GTC coupe. As a result, Opel sold just 4,500 vehicles last year in the world's largest car market."

[chris_r]

You know, it's reading stuff like this, that makes me think they only employ people in the executive positions at GM whose only qualification seems to be the ability to steal oxygen.

Interesting thing to note with that comment, they sold 4500 vehicles in China, yet they sold just over 1000 vehicles in Australia in the same time. Can't say we did too bad on the three models we got.

[Theo]

The way I see it... Incompetence gets you a promotion. I've seen it many a time.

However there is nothing stopping GM producing the Insignia for the Australian market - but I suppose we will need to wait and see what happens to Holden in the coming months.

[chris_r]

If Holden pull manufacturing operations, I believe the name may disappear with it, thanks to all those wankers who put Chev badges on Commodores. And with Chevrolet branded-Korean heaps of crap on sale here, will be the fact that Opel will not be trying to re-enter the market again any time soon. They already burnt their bridges and if they even did, any potential customers would more than likely be aware of the shenanigans that have gone on with owners much like yourself.

But, I'd be willing to put money on the fact Holden are as good as gone. Abbott doesn't want to prop the industry up unless it can fend for itself and why would GM want to invest in manufacturing in a country without government help, when they can just import cars from somewhere where labour costs are low and sell them at a more considerable profit. If GM isn't getting money from the Australian taxpayer, they don't have any interest in keeping an unprofitable manufacturing operation going. Just the other week, the government told Holden if they want handouts, they need to lift their exports from 17 to 30 percent and Holden have flatly refused to do so. That's Holden trying to hold the government to ransom, because they in the end have nothing to lose by packing up shop. It all boils down to whether the Abbott government has the balls to say no to the ransom demands that Holden are putting on the table. Just in comparison, Toyota's Australian factory allegedly exports 72 percent of what it produces.

As for the Insignia, that probably won't happen seeing as we already have the Malibu on sale now.

[Theo]

I totally agree with your comments regarding Holden, but I don't see much future for Korea either. GM has invested $1billion dollars on the Cadillac factory in China, furthermore they have been quoted that they would invest a further $11 billion by 2016 to expand their combined production capacity by 30% to five million vehicles a year. Now 2016 is the year that Holden have been quoted they will reassess their future in Australia.

As for the Malibu, I sense fate will be the same as the Epica

[chris_r]

I totally agree with your comments regarding Holden, but I don't see much future for Korea either. GM has invested $1billion dollars on the Cadillac factory in China, furthermore they have been quoted that they would invest a further $11 billion by 2016 to expand their combined production capacity by 30% to five million vehicles a year. Now 2016 is the year that Holden have been quoted they will reassess their future in Australia.

As for the Malibu, I sense fate will be the same as the Epica

I don't see Korean manufacturing going away any time soon, especially with regards to a certain other manufacturer in that country that pisses me off to no end. With the Chinese market being the largest at present and costs of producing vehicles in that country are lower than most, it only makes sense that GM would invest in manufacturing there. What they invest in China will be chicken feed to the return they can potentially make, just in sales for that country alone. Wishful thinking would see Opel vehicles being sold new on our shores again, but after what transpired in the 14 months or so, I just don't see it happening, even if they take control of operations in countries such as Russia and get back into the black.

Haha, Epica Fail. Which indeed it did. Malibu may be the same as you said, but going back to the execs again, why would they sell a better car when they can make a profit instead? I mean, they've gotta make money to give themselves golden handshakes.

[ChrisMaz]

This kind of thing has been happening for years. Opel does a huge amount of R&D for GM and gets slugged with the losses that R&D entails.

[chris_r]

This kind of thing has been happening for years. Opel does a huge amount of R&D for GM and gets slugged with the losses that R&D entails.

This is probably why GM aborted the sale of Opel in the first place. I don't see GM Korea or Chevrolet developing their own engines/drivetrains for small cars any time soon. Any Daewoo that's been produced over the years has featured engines developed by mostly Opel and diesels by VM Motori (another GM subsidiary).

[Theo]

This kind of thing has been happening for years. Opel does a huge amount of R&D for GM and gets slugged with the losses that R&D entails.

Just look at the integrated bicycle rack that is an option in Europe - it slides out from the rear bumper.... brilliant!!!

On another note though:-

http://www.adelaidenow.com.au/business/companies/holdens-mike-devereux-to-leave-gm-holden-next-month-for-new-role-in-shanghai/story-fni0d54v-1226746891670

Mike Devereux off to China!!!!

[chris_r]

On another note though:-

Mike Devereux off to China!!!!

Good. Now they need a local to run the show. The only thing I took from this douche's tenure, is that he didn't give a toss about local production and was just sent here to scuttle the sinking ship that is Holden.

Wouldn't hurt having someone with some sort of engineering background either.

[faneca]

He was actually one of a fee that was trying to keep the Elizabeth plant in production....