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.


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    • 1 Second Ago
  • 53 Comments
      Avinash Machado
      • 2 Years Ago
      If they get rid of Opel they will lose a lot of market share in Europe. And there is no guarantee that Chevy will gain former Opel customers.
        rlog100
        • 2 Years Ago
        @Avinash Machado
        Walking away from Opel means walking away from most of Europe. But if as a total its losing money and there's no new reason to expect that to change, then that's what is going to happen.
        aatbloke1967
        • 2 Years Ago
        @Avinash Machado
        Precisely.
      TPGIII
      • 2 Years Ago
      GM has not done a very good job of selling any of its divisions. Just look at Saturn, Hummer and Saab. I doubt they will sell Opel to a competitor since Opel is the source of a significant share of GM's technology. So what would be left, spin them off? That didn't work very well for Delphi or American Axle. While they are still around, both went through bankruptcy and Delphi's was the longest running bankruptcy in US history. If it happens, I wish them well.
      Michael Kowalski
      • 2 Years Ago
      The only way to dump Opel is if they can keep the engineering teams. Alot of GM's current R&D comes from Opel engineering and that getting rid of the development teams is pretty much death to the rest of the company, at least from a short term outlook. GM could survive without Opel's engineering teams, but it'd definitely be painfully.
        • 2 Years Ago
        @Michael Kowalski
        [blocked]
      dukeisduke
      • 2 Years Ago
      They say they're supporting Opel, while at the same time they're pushing Chevy into Europe. So are they going to move Opel upmarket? Hasn't Opel traditionally been a Chevy-type brand in Europe? It sounds like they're contradicting themselves.
      MANARC100
      • 2 Years Ago
      Well just charge Buick for Opels R&D that should help shuffle expenses. There is a lot of Buick / Opel overlap so killing Opel where they are created probably wouldn't save that much. Buickfied Opels are sold in china too.
      Jesus!
      • 2 Years Ago
      If they support them like Ford said they supported Mercury Opel is a goner!
      drewski
      • 2 Years Ago
      It's easy when it's not your dough. Morgan Stanley (and others financial groups) have had their hands in the government / me & you / tax payers cookie jar for a long time. Alzheimer's disease is a terrible thing that in time we may have a cure for. But as long as the people of this country don't forget, please get your hands out of my (us taxpayers) cookie jar. We all pay taxes to help run aspects of government, not to finance pet projects for the people that got you into office on our dime, leaving the US taxpayer holding the bag when these projects fail. Best that the US taxpayer can do is break even on these projects. Nice risk, right? Morgan Stanley soon forgets about their own TARP bailout (So maybe this 2009 memo was just PR, maybe from the heart, or a heavy investment in GM down the road, could be one or all. Pretty much "Spin baby, spin" Jun 17 2009 | New York Today Morgan Stanley (NYSE: MS) was pleased to pay back the $10 billion in TARP money to the U.S. Treasury. Morgan Stanley and its employees appreciate the support of the U.S. government, Congress and the Administration during this challenging period. We also welcome and support the regulatory reforms proposed by the Obama Administration as we continue to work with the Administration and Congress to ensure safety and soundness in the banking system and the strength and stability of our overall financial system. Contacts: Media Relations, Jeanmarie McFadden, 212.762.6901 Investor Relations, Suzanne Charnas, 212.761.3043 They always say that if you go into business use someone else's money, not your own. May hold true in the private sector, but it should not be the people elected into office on how "our" tax money is spent. Again, please get your hands out of my cookie jar. drewski
      Ducman69
      • 2 Years Ago
      Why should they bail on Opel? They can just wait for the next round of government handouts.
        MPG-Linked-In
        • 2 Years Ago
        @Ducman69
        Get a life. Do people like you wait around all day just to mention GM got bailouts? Is that the best you can do with your time? How (un) original...
        Daryll
        • 2 Years Ago
        @Ducman69
        Only if they come from the German government!
      clquake
      • 2 Years Ago
      Without Opel, GM would only make Silverados, Camaros, and Corvettes.
        • 2 Years Ago
        @clquake
        [blocked]
          clquake
          • 2 Years Ago
          Ahem, CAFE says that business model stops dead in it tracks in the US. If you really think selling small niche sports/muscle cars & trucks will keep GM in business, you really need to stop drinking and typing.
          • 2 Years Ago
          [blocked]
          clquake
          • 2 Years Ago
          Rick, if there's no GM US, there's no GM in Europe. There's nothing that currently exists in GM's stable that would let it survive without Opel's development. And where are these 100 MPG trucks? You're living in some sort of weird delusional GM dream world.
      Chase
      • 2 Years Ago
      Typical financial institution advice. Bad idea. Opel and GM Europe have a lot of value to GM that won't be easily replaced. GM is profitable as a whole and a part of the reason why is the contributions of GM Europe.
        Sir Duke
        • 2 Years Ago
        @Chase
        You're so wrong. Opel has been bleeding cash. GM is throwing Opel a bone by selling its cars (Opel) in other markets. Once Buick starts developing its own cars Opel is done for.
          aatbloke1967
          • 2 Years Ago
          @Sir Duke
          You do realise that profit is not the same as cash, don't you?
          aatbloke1967
          • 2 Years Ago
          @Sir Duke
          Buick won't develop its own cars - it's not a separate legal entity from GM.
        Daryll
        • 2 Years Ago
        @Chase
        GM is/has been losing tons on Opel! GME has lost an average of $1.3 billion a year for the past 13 years... GMNA has saved many of their recent programs in the 11th hour behind the scenes because of their dysfuntionality (i.e. Insignia/Regal, Cruze, etc.). Their contributions have resulted in nothing more than massive financial losses and significant increases in warranty claims. The sooner they are gone the better.
      bootsnchaps60
      • 2 Years Ago
      Except for the three truck lines and Corvette, everything else GM has is either a Holden, an Opel, or a Daewoo of some sort. Maybe it's time to change the corporate name to H-O-D, or O-H-D, or D-O-H. Even the "new" Cadillacs look like Chevrolets. GM is continuing to follow the AMC business model.
        carfan
        • 2 Years Ago
        @bootsnchaps60
        you really are an ignorant or just plain stupid, either way, doesn't look good for you!
      Georg
      • 2 Years Ago
      Opel would not lose money if GM would settle a fair financel balance for development done by Opel for other GM brands... platforms used by GM developt by Opel ...and Opel recive no money from GM but the costs of the development center are full in the Opel costs... no matter how hard Opel would try they can never make profit under this conditions GM Gamma II platfrom ... developt by Opel used for Chevy Spark Chevy Aveo Chevy Sonic Buick Encore Holden Trax Chevy Trax GM Delta II platform ... developt by Opel used for Chevy Cruze Buick Excell XT Chevy Volt Chevy Orlando Buick Verano Cadillac ELR GM Epsilon II platform ...developt by Opel used for Buick Regal Buick Lacross Chevy Malibu Holden Malibu on the Super Epsilon 2 plafrom Cadillac XTS Chevy Impalla GM would run against the wall if they would sell Opel...
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