Friday, February 27, 2009

Opel to partially break away from GM

The International Herald Tribune reports that GM Europe Executives who state that Opel needs $4.2 billion in government aid to stay afloat want to distance Opel somewhat from GM:

Managers envision Opel becoming a "legally demarcated, at least partly independent business unit," GM Europe President Carl-Peter Forster said after Adam Opel GmbH's supervisory board met at its Ruesselsheim, Germany headquarters. Forster heads the board, the equivalent of a U.S. board of directors.

Pardon the ridiculous formatting, but Bloggers being dumb right now. Anyways I think this really isn't a good move on GM or Opel's part, as Opel definitely would have a lot of trouble competing in the European Market place against Ford Europe, VW etc. Adam Opel GmbH isn't a large enough corporation to be independent, additionaly GM's British subsidary, Vauxhall relies mostly on selling rebadged Opels, (Opel isn't sold in the U.K, and Vauxhall isnt' sold on the continent). In the end it really depends on a number of factors but mainly, how Vauxhall would be dealt with, and how independent Opel would be, would Opel be able to take advantage of GM's size to support it? How independent would Opel be?, would it just be third-party investors, or would it be moving towards an independent company? I can see it working out well if Opel moves somewhat towards the same sort of relationship Mazda and Ford have, perhaps, with a greater GM Motors stake though. Maybe, Opel, Vauxhall, Saab should consolidate perhaps with either Saab or Opel being the holding company and GM holding a majority stake?

Expect a full-fledged Carpocalypse post, post my Japanese exam of hell.

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