Part and Parcel: GM could sell all of Opel, keep Vauxhall?
Emerging reports concerning the future of General Motors' European assets casts some new light on the role which the American automaker could take with Opel and Vauxhall. The ownership and investment in Adam Opel GmbH has been a topic of much discussion recently, with General Motors seeking local government support, considering letting Opel go independent, the involvement of outside investors, and possibly the sale of the entire operation to another automaker, with Fiat and contract manufacturer Magna International touted as possible buyers. The General's new CEO, Fritz Henderson, has stated that while the company could sell Opel and divest from the company entirely, it's also possible that, given Opel's integration into GM's global operations, Detroit could hold on to majority interest in the German subsidiary while taking on additional minority stockholders.
The future of Vauxhall is emerging, however, as another question entirely. Previous reports placed the British subsidiary – the bulk of whose line-up are produced by Opel – in the same package as its German counterpart. And while Vauxhall could go to the same buyer as Opel, GM could apparently keep the British label under its own wing, citing the UK as one of its largest markets in Europe.
[Sources: The Detroit News and Automotive News Europe – subs. req'd]
Reader Comments (Page 1 of 3)
bakka 10:47AM (4/28/2009)
They are dismantling the company.
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Graham 10:47AM (4/28/2009)
I think you guys might want to do sit back and do some critical thinking on that one. Every Vauxhall, except the VXR (Holden), is a right hand drive Opel. There is one GM factory in the UK and it makes the Astra. If they sell Opel and keep Vauxhall, they're not going to have any products for Vauxhall to sell.
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Bloke 11:05AM (4/28/2009)
Graham, they are not "right hand drive Opels." Both Vauxhall and Opel are GME products; most of the development takes place at Opel. That said, GME also has its own engineering, R&D and design centres in the UK.
The facility at Ellesmere Port produces Astras, and the plant in Luton (run by GMM Luton Ltd, another subsidiary) produces the light commercial vehicle lines for Vauxhall and Opel in partnership with Renault.
nagmashot 11:32AM (4/28/2009)
@Bloke
Vauxhall UK has no own real development.... in the Opel plant in Rüsselsheim Germany allone are working three time more employees than for complete Vauxhall UK...
Vauxhall last own developt car dates back in the 1970´s ....
GM´s second largest development center in the world is located in Rüsselsheim Germany there they develop ALL sub compact to midsize vehicles sold by all GM brands world wide (outside the USA)... only large vehicles are developt by Holden Australia
Bloke 11:48AM (4/28/2009)
Nagmashot - GME conceives these cars, not Opel. The cars themselves just happen to be engineered/developed by GME at Opel. Cars and commercial vehicles are then built using GME plants at Opel and Vauxhall throughout the UK and continental Europe.
Bear in mind that the UK is GME's largest market for the majority of its models, including the former Vectra, which is why the Insignia debuted in London. Its mainstream B-segment, D-segment and E-segment products consistently make it in the top 5 best-sellers in the UK. Much of this is down to the UK being the world's largest company car market - making it critical for GM.
The Vauxhall/Opel badge on the product itself is irrelevant.
Ian 11:52AM (4/28/2009)
One problem in splitting Opel from Vauxhall would be that Ellesmere Port is also home to an Engine Plant that supplies Opel with EcoTEC engines. (at least it was last time I was there).
ojppjojopj 10:50AM (4/28/2009)
Of course they are, now ask who is dismantling the company and why?
Then look at everything else going on in the world, who America elected President and what his background is and who his supporters are....
You would have to be a complete idiot not to understand. It still amazes me we're letting it happen.
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Steve Lopez 11:00AM (4/28/2009)
What does the new President have anything to with this mess?
The last 8 years have been a big mess, so, lets not start blaming the new President and his staff for trying to clean up this big mess we're in.
Bad management is what did this to these companies, not government and also car makers were building vehicles customers wanted and they were not small ones.
Get real and do the math.
jamie 11:27AM (4/28/2009)
ojppjojopj
"Of course they are, now ask who is dismantling the company and why? "
The Federal government is doing the job that needed to be done, because GM managers were reluctant to do so.
Ford had a better idea and decided earlier on to dismantle their empire (Aston Martin, Jaguar, Land Rover and soon Volvo).
Steve Lopez
" Bad management is what did this to these companies"
I am in total agreement with you on that one.
Andy 12:01PM (4/28/2009)
ojppjojopj, you're my hero bro. You're not shy to share with us you're most idiotic comments and thoughts.
Olivier Parent 10:53AM (4/28/2009)
That wouldn't make any sense, Vauxhall hasn't been sold in Mainland Europe for many decades, so it's an unknown brand to most people. Even in Ireland Vauxhalls (right-hand drive versions of Opel models) are sold under the Opel brand. If GM wants to launch a new brand in Europe Pontiac would make much more sense than Vauxhall.
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Bloke 11:12AM (4/28/2009)
Vauxhalls were last sold in continental Europe in the mid 1980's, when the Opel name was also gradually withdrawn from the UK market.
hypermiler 11:00AM (4/28/2009)
I don't see how this could work since Vauxhall doesn't even have its own R&D; it is simply a UK Opel.
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Bloke 11:07AM (4/28/2009)
GME has a design centre in Birmingham and an R&D/enginnering centre at Millbrook, used extensively by Vauxhall.
Fox 11:02AM (4/28/2009)
I don't see that happening...Every Vauxhall is a rebadged Opel.
Vauxhall brand name will more likely will be sold along with Opel...
Even in the UK during the boom years the Vauxhall badge was under threat anyway. There was constant debate that the badge would be dropped and just sell them as Opels. Main reason is that Vauxhall has a poor image (basic company car/rental car image)
As someone already mentioned, even in Ireland which is right hand drive the cars there are sold as Opels...
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Bloke 11:11AM (4/28/2009)
Both Vauxhall and Opel are essentially fleet cars, regardless of where in Europe you are - don't kid yourself that it's any other way. There have been several proposed moves to use the Opel name in the UK in the past twenty years, but GME dropped the idea each time.
Bloke 11:30AM (4/28/2009)
In addition, Vauxhall isn't merely a "brand name" - it's a subsidiary company like Opel and a legal entity in its own right. However, the corporate structure in the UK is quite complex: Vauxhall Motors Ltd, along with Opel Ireland Ltd, Saab GB Ltd, Chevrolet UK Ltd and GMM Luton Ltd are all subsidiaries of GM UK Ltd. Of those subsidiaries, only GMM and Vauxhall are actually manufacturing entities. GM UK Ltd is a subsidiary of GM along with Adam Opel GmbH.
This may be the reason behind the rationale for Vauxhall being retained by GM and Opel being sold, either partially or entirely.
Vlad 11:03AM (4/28/2009)
This is ridiculous.
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eMax 11:04AM (4/28/2009)
GM needs to stream line everything. Get rid of the seperate "brands" as an entire brand and keep each model from each brand that works.
Have a single "GENERAL MOTORS" dealership that sells the "Pontiac" Solstice, "Chevy" Corvette, "GMC" Yukon, etc... This will eliminate the need for Pontiac, or any "brand" to exist as an entire separate car line, yet allow each brand's history to remain in tact.
This will allow the best cars/trucks from each brand to stay alive and stream line GM's company and overall service. No one needs more then 1 version of the exact same car.
This will help all the dealerships because its better to stay in business then to have to close your only "pontiac" or other brand dealership.
Everyone wins here.
I just hope someone at GM reads this comment!
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jamie 11:45AM (4/28/2009)
Looks like a good plan on paper, but it would never fly in the real world.
Can you imagine Toyota separating its current nameplates into 8 different brands?
Customers would be totally confused and put off by such nonsense; not to mention the advertising budget and legal corporate structure would have to be enlarged to accommodate all the new stable mates. Larger structure means more costs. More costs create a higher break even point. A higher break even point means less profit overall. Mr Toyoda would never condescend to this type of arrangement. It is just not cost effective.
Furthermore, would GM sell the GMC Sierra alongside the Chevy Silverado? One would definitely cannibalize the other. And yet both are hot sellers. Dealers would push whatever they had on their lot to the detriment of the other brand completely overlooking customer preference. It would become a customer relations nightmare and corporate boondoggle in a matter of months.
To be fair, if a plan could be worked out where each brand only had one or two models each, then your idea might work. However, it is almost impossible to separate the brands from the models in that way. I know. I have tried. There is just too much overlap.