Morgan Stanley says GM should bail on Opel
General Motors should walk away from its European brand and settle its losses, one financial institution said this week in a report.
Morgan Stanley analysts said Thursday that Opel has cost GM $10 billion to $20 billion over the past three years, and if GM keeps the brand, it will cost it up to another $12 billion over the next 10 years. Even selling off Opel could cost GM up to $13 billion, the report concluded.
GM considered selling off the brand three years ago when the company filed for bankruptcy protection. However, that plan ultimately failed when the board of directors turned it down. Since then, Opel has had several changes in leadership and remains plagued with financial problems.
Of course, GM remains supportive of Opel in public. "We are committed to Opel and believe we can restore it to long-term profitability," GM spokesman Jim Cain told the The Detroit Free Press in an e-mail.