• Apr 23rd 2009 at 10:59AM
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General Motors wants out of Opel, and according to new reports, it is willing to let the German automaker go without receiving any money for it. The only requirement is that the buyer must inject €500 million (around $652M USD) into Opel for operations. While GM CEO Fritz Henderson has said there are six serious investors in discussions for Opel, and that a deal should be done by early May, the fact that GM has said "if you pay the bills you can have it" indicates that GM is ready to work with anyone who's willing to sign.

Making a deal would not only free GM of Opel's current burdens, but the obligations it would have if Opel shuts down under its watch. Another outlet is reporting that Opel sold a range of technologies to GM in 2005 for which it's still owed hundreds of millions of dollars. If GM returned the patents (currently held by the U.S. government), then GM could lower its debt load and Opel would get an asset with which it could secure alternate financing.

[Source: The Local]

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    • 1 Second Ago
      • 6 Years Ago
      If i were Opel, i'd be begging someone to take me off of GMs hands.

      Seems like a good down market brand for a company like BMW or MB, though i highly doubt MB has the funds needed even at the sticker price of *free*.
      • 6 Years Ago
      So, what's wrong with that?

      GM has good products out there. It has to get its act together with car people and managers that know how to manage.

      UAW needs to get its act together with its rules and regulations. Both Management and Union leaders need a wake up call fast.

      If not, GM is done and can never come back.

      Bad news for all of us in and out of the auto business.

      I hope something positive happens soon.
      • 6 Years Ago
      All this "GM is cutting" seriously, if your going to go bust just do it now already. Don't get loans from the government then file for bankruptcy. Don't screw the tax payers out of their money please GM! Thats all we do is wake up to a new GM plan of cutting or laying off. How is it these guys can afford to maintain the Ren Cen is unbelievable the building is worth 5 billion but they are losing more than that in a month.
        • 6 Years Ago
        No building in Detroit is worth $5B. Few buildings anywhere are worth that much. And with the lending market frozen, commercial real estate investors are unable to get refinancing for completely rented office space that they already own, let buildings in a depressed market like Detroit.
        • 6 Years Ago
        Do you understand anything about business or do you just read the NYT and the Huffington Post and go complain on the internet without understanding the concepts and realities?

        I think everyone should be required to take some basic business courses so they don't sound stupid when talking about economics and companies.

        • 6 Years Ago
        Ok, OK i admit......i took Home Economics, I can flip a mean hash.

        Having said that, i was referring to that a failed business model needs to die. I know that bankruptcy is not death, i was simply pointing out that in the CURRENT form GM does not make money, something needs to change and bankruptcy is the place where that change should take place. I think GM should file ASAP and restructure ASAP while the government has its back, and come out stronger and smaller (ala Honda).

        GMs problem is its product, you can not have a good product when you have so many brands, example G3. Pontiac wanted a great small car, but because money so spread around money went into rebadgings, instead of a new great small car.
        • 6 Years Ago
        you people are funny. sea urchin "i have taken more than a few economics courses". hahahaha. and that makes you the omniscient one who knows that "a failed bisiness can not survive"? really?

        first, you can start by correctly spelling the word BUSINESS! that'll help give your point some validity.

        you've never heard of a failing business that survived? really? how bout united airlines? they filed chapter 11 and came out fine. how bout Pacific Gas & Electric? Texaco? Conseco Inc.? No? haven't heard of them? didn't think so. do some research before you speak please.
        • 6 Years Ago
        another_one - You think going from a manufacturing to a service-only industry is "evolution"? That has to be the funniest thing I've heard all day. Just ask the British. No wonder the Asians and Germans are eating our cake.

        There has to be a balance of both. It's the advent of paper-pushing "intangible" industries that has lead to this mess.

        • 6 Years Ago
        If we are looking at pure economics; what is the point of propping up a poor (make that dismal) business model? I realistically don't think that GM will exist in it's current form... regardless of bankruptcy.

        The only intrinsic value GM has is it's branding, dealer network (which it doesn't "own"), patents and some infrastructure (even that is a liability). If GM ceases to exist as we know it; is bought out by another group and restructured, reinvented, retooled... whatever you want to call it... so be it. I agree with other two repliers that it [GM] will not survive as it is in failing. Is that a bad thing? Do we want to preserve GM "as it is" or even as it will be?

        If you think government anything is going to save the auto industry; you only need to consult history, can I say British-Leland.

        The other thing to note is the "evolution" of the US economy from manufacturing to service/tech. As wages go up the value of manufacturing locally drops (if there is cheaper labor - there is) I think GM/Chrysler/Ford? failure is just another step in our "evolution."

        Worth only what you pay for it... nothing.
        • 6 Years Ago
        Mazda, i have taken more that a few Eco classes and i can asure you that Kevin is right, a failed bisiness can not survive, as simple as that.
      • 6 Years Ago
      No enthusiast or car guy would have let go of Opel.
      Government Motors-yeesch.
      • 6 Years Ago
      I'm confused. Does GM want to get rid of the name OPEL itself, but maintain the vehicles (platforms, powertrains, etc)? Or give everything away to another highest bidder, and therefore have ZERO presence in Europe?

      I was under the impression that here in North America we would get derivates of the Opel Corsa, Astra, and Insignia? What is the point of the Opel Ampera (Chevy Volt)?
      • 6 Years Ago
      Let Opel go for FREE? I'd gladly give them one dollar!
      • 6 Years Ago
      If GM is willing to deal like this with whole brands, I wonder what kind of deal I could get for taking a Camaro off their hands?
        • 6 Years Ago
        I see, I misread what he posted. Reading it too fast I didn't see it was a comment in 1st person. I read it like that:

        -"I wonder what kind of deal _they_ could get for taking Camaro off their hands?"-

        You know, sticking to the topic of the article. When read like that he could have been a strong supporter of Camaro, wanting to save the muscle line from a GM collapse, the same way Opel could be. It's not that farfetched.

        I understand the joke, no problem. But hey, thanks for getting offensive on me!

        • 6 Years Ago
        Damn, stfu eu_reader. It's called a joke. You should know that, since that's what you see every time you look in the mirror.
        • 6 Years Ago
        Since when is camaro a seperate badge?

        It seems to me that it's 'chevrolet camaro'. Unless they're willing to spin off Camaro as their own muscle car 'brand'...
        • 6 Years Ago
        *sigh* No on here gets a joke when they see it...
      • 6 Years Ago
      Yes!! I'm very pleased with that decision. And it looks like GM will benefit from it as well. Win-win.

      Most of all, i'm glad they're not dragging Opel along in GM's domestic misery. Opel deserves better than being held hostage by failing management in the US.

      Also, that way, European governments (Germany/Belgium/UK) can issue measures as they see fit to help Opel if needed. Without having to deal with overseas management and enormous bureaucracy.

      Belgium and Germany sent delegations to GM HQ for more information. They didn't respond, it looked like they didn't even care. I understand that Germany is hesitant to act in favour of Opel, if all it does is p*ssing away aid in a bottemless pit on the other side of the atlantic.

      To the point: Opel is well loved, specially by young people, for producting charming and not too expensive 'basic' little cars that get the job done. Corsas, Vectras, you name it.

      I can go outside now and start counting Opels by the dozens. In my very short 100 yard street I could probably find 5 of them.
      • 6 Years Ago
      I don't think selling Opel is a good idea.

      GM needs presence in Europe and Opel/Vauxhall are good cars.

      Who is thinking of these ideas at GM anyway?

        • 6 Years Ago
        You said "ideas", "thinking" and "GM" in the same sentence! Looooool!
      • 6 Years Ago
      GM: Lets cut one of our only successful brands in europe!
      Brown nosing employee: BRILLIANT!
      • 6 Years Ago
      Well considering the technology and R&D GM receives from Opel maybe they hold hang on to it. Or if they spin it off they should have a buy back option.
      • 6 Years Ago
      It's embarrassing what people post here. And you are one of them Kevin.
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