Marchionne to Germans: If you have a better offer for Opel, take it
Fiat's bid for worldwide domination of the automotive industry has seen a bit of a snag in Germany, where government officials are said to be balking at the Italian automaker's plan to take over GM's struggling Opel brand. Fiat CEO Sergio Marchionne sounds confident that his plan is the best way forward for Opel, saying:
"I'm offering the German government a car business that will be effectively debt-free and I will take on Opel's liabilities, including pensions. I told them: if you have a better offer, take it."Indeed, the German government may do just that. A competing bid from auto parts supplier Magna International is said to be the more attractive proposal from Germany's standpoint since it would likely offer guarantees that manufacturing sites in Germany, Belgium and England would remain humming along at full capacity.
Fiat's plan would rely heavily on the expected cost savings realized by combining all of its various automobiles on a single set of platforms – a process that would almost assuredly also dictate a corresponding loss of jobs.
[Source: Automotive News - Sub. Req'd | Image: AFP/Getty]
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Reader Comments (Page 1 of 2)
Beastage 7:22PM (5/08/2009)
So the German government might prefer an offer that ignores the poor situation that Opel is in now, and will continue senseless production until it will go bankrupt? what happened to German efficiency?
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Noz 2:58AM (5/09/2009)
US roots come from Germany...and England. So look to the Germans to be as greedy and self-destructive as Americans when it comes to business
adrian 4:47PM (5/09/2009)
Opel is in a bad way, But a Fiat takeover is bad news if their cars are anything to go by. I have some friends who have owned them and Alfa's in the past. The cars look good and handle well but the electrics in particular have a track record and all for the wrong reasons.
As for the dealers. Well, lets not go down that route when it comes to servicing costs and pricing of spare parts. If Fiat comes to the US you will know what I'm talking about, Trust me.
Fiat / Alfa's= Wallet burners.
massib5 6:20AM (5/11/2009)
you never owned an alfa or a modern fiat, trust me...i've both and you don't know what you're talking about.
Johari 7:28PM (5/08/2009)
While you're at it, take Saturn too.
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Jimbo 1:42AM (5/09/2009)
I agree. Keeping the Saturn-Opel connection would give Magna much more market penetration than Opel alone. Heck, they could even dump the Saturn name and sell them as Opels.
Judy Zik 12:54PM (5/09/2009)
Makes amazing business sense. Unfortunately for GM it would be the kind of competition that would hit them where it hurts. GM has taught their fans not to feel dirty buying an Opel/Saturn and Opel is behind some of their best designs. In the beginning you would have a competitor selling their own versions of some of GM's best models in GM's home turf. In the long run when Opel applies their magic to the next generation GM could get shut out and really start to feel the pain. The Opel/Saturn tie up makes sense but think GM will do everything it can to avoid playing matchmaker to a super couple that might mortally wound them in their home market.
MazdaMania 7:29PM (5/08/2009)
FIAT would be great with Opel!
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British_Rover 7:50PM (5/08/2009)
Man Sergio is such a perfect car salesman. I love the, "if you can find a better deal take it close." That is freaking awesome.
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gforce 9:15PM (5/08/2009)
I just wish he had've channeled Iacocca even more and said "If you can find a better car company deal, buy it!"
WilliamTell 7:54PM (5/08/2009)
He's gonna make them an offer they can't refuse.
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thomas 7:55PM (5/08/2009)
nice.
Vik 11:24AM (5/10/2009)
Did you notice his hand, in the picture? This means "WTF?" in Italian
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why not the LS2LS7? 8:21PM (5/08/2009)
Marchionne:
Careful who you step on on the way up, because you meet the same people on the way down.
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wasabi 9:15PM (5/08/2009)
Oh this is too funny...GM paid FIAT $2 billion a few of years ago so GM wouldn't be forced to buy FIAT. Looks like they might get some of that money back now. Maybe I can trade my Obamillac for a nice Alfa.
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Sea Urchin 10:30PM (5/08/2009)
Obamillac?
I heard GM (Gettlefinger Motors) that Obamillac is really funny.
Bloke 10:51AM (5/09/2009)
GM was in a pretty standard compensation clause agreement with Fiat at the time. Of course it'll get paid for selling Opel, but bear in mind it'll lose a large chunk of its European business - and market share - in the process.
Rar 10:12PM (5/08/2009)
"if you have a better offer, take it."
sound like a real man.
good luck.
next Lee Iacocca?
or
next Rick Wagoner?
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nagmashot 12:47AM (5/09/2009)
Fiat
410million Euro losses (1.quater 09)
18.0billion Euro net debts (31.03.09)
- 67.0% of all Germans think Fiat is incompetent to rescue Opel!!
- all Expert think that Fiat is incompetent to rescue Opel
- last quater of 2005 was after 25years the first time that Fiat made a win, only
two years later they write again red numbers!
- according to Roland Koch Prime Minister of Hessen (federal sate of Germany were Opel HQ is based) Fiat has till 08.May.2009 NEVER looked at any GM europe datas about Ope(GM Europe has offered the numbers Fiat several times)l!!!!! That did Prime Minister Roland Koch claim yesterday after talking with Sergio Marchionne in Frankfurt/Germany.
and Fiat realy wonder why they recive no support or no one is realy happy about their offer?
Sergio Marchionne is creating a extremaly weak company based on companys that had lot of troubles over decades... most likely his dreams ends in a desaster...
Most belive that he is only interest in the 5-7billion german government loans
The german population prefer the austrian/canadian Magna Opel solution over a Fiat Opel solution...
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Rar 1:21AM (5/09/2009)
however, FIAT if better choice for world automotive industry.
best choice is, German Goverment buy opel. Sweden Goverment buy saab, volvo.
if both goverment are not rescue them, second choice is fiat.
FIAT is a only hope of automotive industry.
FIAT is not a invader, they are only hope, and they sacrifice them for world automotive industry.
if China company buy saab, opel, volvo... once they got the technology they wanted. All workers will layoffs.
Here is the evidence.
In Carmaker’s Collapse, a Microcosm of South Korea’s Woes
NYTimes
“Chinese company BOE got the technology they wanted. All we got was layoffs,” said Hwang Pil-sang, a Hydis worker."
“We trusted their promise to help us into the vast Chinese market,” Mr. Yang said. “In the end, they kept none of their promises, and they got what they wanted: our technology.”
http://www.nytimes.com/2009/02/24/world/asia/24seoul.html?pagewanted=1&_r=2&ref=asia