Photo: Opel
Two weeks before the Paris Motor Show began, I talked at length about the constant rumor that GM is to selling Opel. This usually came from america and argued Opel is wasting GM’s profits with its constant losses. But the point is, GM wouldn’t be half as successful across the world were it not for the technologies developed by “za Germans”.
The restructuring plan that one of Europe’s largest automakers is undergoing will cost plenty of workers their jobs in the struggling market, but Opel should survive. Yet the decay of the company means vultures are always circling up above.
Italian newspaper Il Sole-24 Ore reported that Fiat CEO Sergio Marchionne wants to reopen negotiations with GM to buy Opel. However, the Americans are adamant the are keeping Opel and say the alliance with PSA is on track.
"Opel is not for sale. GM fully stands behind Opel," said GM Vice Chairman Stephen Girsky in a statement today, Autonews reports. "Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe. The GM-PSA alliance is fully on track."
A sign of maturity or better things to come? Most automakers are predicting a European recovery is not possible until 2014, but GM seem to have a plan. Production of the Astra will be moved from Germany to more efficient plants, they have new downsized engines coming, and the PSA alliance is sure to save plenty of money in supply chains and raw material acquisition.
If we were to use a stock market analogy, selling Opel right now would be like giving up on a losing position at a low in the market to save some of the investment. If GM truly believes Europe will recover, than fortifying its position is a far better idea.
Italian newspaper Il Sole-24 Ore reported that Fiat CEO Sergio Marchionne wants to reopen negotiations with GM to buy Opel. However, the Americans are adamant the are keeping Opel and say the alliance with PSA is on track.
"Opel is not for sale. GM fully stands behind Opel," said GM Vice Chairman Stephen Girsky in a statement today, Autonews reports. "Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe. The GM-PSA alliance is fully on track."
A sign of maturity or better things to come? Most automakers are predicting a European recovery is not possible until 2014, but GM seem to have a plan. Production of the Astra will be moved from Germany to more efficient plants, they have new downsized engines coming, and the PSA alliance is sure to save plenty of money in supply chains and raw material acquisition.
If we were to use a stock market analogy, selling Opel right now would be like giving up on a losing position at a low in the market to save some of the investment. If GM truly believes Europe will recover, than fortifying its position is a far better idea.
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