Autoblog

REPORT: Germany wants GM's plan for Opel - and a billion dollars - "quickly"

Jonathon Ramsey — Thu, 12 Nov 2009 11:28:00 EST

Filed under: Europe, Government/Legal, GM, Opel

General Motors' bouleversement on the sale of its Opel brand has caused the European head of Opel vacate his office, the head of Opel labor to gulp "a bottle of wine" to get over the shock, the German head of state to request "GM to present a reliable plan for Opel quickly," and Germany's economic minister to prod GM to pay back the rest of the €1.5 billion ($2.25B U.S.) bridge loan.

GM's response has been for CEO Fritz Henderson to Germany on an "Opel charm tour," to pay back a portion of the borrowed fund and promise the remaining €600 million by the end of the month, and to declare that it will only need €3.5 billion ($4.5B U.S.) to restructure Opel. GM crows that the amount is "significantly lower than all bids submitted as part of the investor solicitation" and how, in fact, it's less than the €4.5 billion the German government pledged to give Magna in aid (much less Magna's anticipated restructuring costs).

The gap in this scenario: Where did GM get that number? It was rumored that Belgian investment bank RHJ was only looking to hold on to Opel for a turnaround sale to GM, which would seem to indicate they weren't going to spend a ton of money on restructuring, and even its final bid was more than €3.5 billion. Moody's predicts GM will actually need €5.8 billion ($8.5B USD) to turn Opel fully around. Nevertheless, some see this as a good thing. For us, the only conclusion we can come to is the same one we've been held at for six months: a lot of questions still need answering.

[Source: Automotive News, sub req'd | Source Image: Warner Bros.]

REPORT: Germany wants GM's plan for Opel - and a billion dollars - "quickly" originally appeared on Autoblog on Thu, 12 Nov 2009 11:28:00 EST. Please see our terms for use of feeds.

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REPORT: Opel President Carl-Peter Forster quits after sale collapse

Sam Abuelsamid — Fri, 06 Nov 2009 11:00:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, GM, Opel

German magazine Der Spiegel is reporting this morning that Opel President Carl-Peter Forster has resigned from General Motors following the board's decision to kill the sale of a majority stake to Magna International. Apparently, Forster was disgusted at the way that GM officials handled the whole process. Over the past several months, GM went back-and-forth, first agreeing to sell to Magna, then opting for another bid before returning to Magna, only to finally kill the deal altogether and keep the brand for itself.

A statement issued by GM Europe today declines comment on the whole matter, dismissing speculation about any personnel changes. The statement as translated by Google appears after the jump.

[Source: Der Spiegel via Autocar]

Continue reading REPORT: Opel President Carl-Peter Forster quits after sale collapse

REPORT: Opel President Carl-Peter Forster quits after sale collapse originally appeared on Autoblog on Fri, 06 Nov 2009 11:00:00 EST. Please see our terms for use of feeds.

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Germany not happy with GM abandoning Opel sale

John Neff — Wed, 04 Nov 2009 11:19:00 EST

Filed under: Europe, GM, Opel

It was an exhausting 7-month process that finally winnowed down a pool of suitors for Opel, General Motors' European subsidiary, to Canadian parts maker Magna and Russian bank Sberbank. The deal was all set to go through, but GM pulled the plug yesterday at the 11th hour, claiming that because of Europe's improving markets and its own better-than-expected financial footing, the automaker could do better for Opel and employees than any of its proposed buyers.

Not so says government officials in Germany, who are reportedly crying in their steins and cursing the day Fritz Henderson was born (we're guessing). Of course, there's money involved, but GM has vowed to pay back the €1.5 billion bridge loan it received from the German government to keep Opel afloat during the selling process. It reportedly only borrowed €1.1 billion and has already paid back €200 million, so Germany is still owed about €900 million.

Aside from the money, German officials and Opel employees in the country are concerned that there will be more job cuts and plant closings by GM than there would have been if the company had been sold to Magna. As such, some of the unions in Germany that had agreed to concessions in order to woo Magna into ownership have vowed not to extend those same concessions to GM.

Outside of Germany, however, GM Europe workers are reportedly happy with the decision to keep Opel in the family fold. Their jubilation stems from fear that had Germany succeeded in brokering the sale of Opel to Magna, other countries like the UK, Spain and Belgium would bear the brunt of restructuring instead of Deutschland. This way, GM is more likely to evenly spread out the costs of restructuring, including job loss, without one region being able to exert too much influence.

[Source: The Detroit News, Automotive News - sub. req'd | Photo by TORSTEN SILZ/AFP/Getty]

Germany not happy with GM abandoning Opel sale originally appeared on Autoblog on Wed, 04 Nov 2009 11:19:00 EST. Please see our terms for use of feeds.

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Opel fate still up in the air as Russian involvement reportedly complicates Magna offer

Sam Abuelsamid — Fri, 07 Aug 2009 08:58:00 EST

Filed under: Government/Legal, GM, Earnings/Financials, Opel, Vauxhall

Over on General Motors' Europe "Driving Conversations" blog, VP John Smith has posted an update on the company's negotiations to sell a majority stake in Opel and Vauxhall. Although no final decision has been made yet, it's looking increasingly likely that the previous tentative agreement with Magna International may be usurped by a bid from RHJ International. This, despite the fact that the German government has been favoring the Magna bid because of the suppliers commitment to preserving jobs at German factories.

However, most of the money for the Magna bid is coming from the Russian government and Russian bank Sberbank. The involvement of multiple parties from different countries is making things difficult because of concerns with transferring intellectual property. GM's move to a global development process over the past decade means that Opel shares in much of the technology for hybrids, fuel cells and electric vehicles that the automaker has developed. For obvious competitive reasons, GM wants to retain control of much of that institutional knowledge, and the Belgian holding company seems to be much more amenable to that idea. Smith promises more updates in the coming weeks.

[Source: General Motors]

Opel fate still up in the air as Russian involvement reportedly complicates Magna offer originally appeared on Autoblog on Fri, 07 Aug 2009 08:58:00 EST. Please see our terms for use of feeds.

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German government approves majority sale of Opel to Magna, Russians

Sam Abuelsamid — Sun, 31 May 2009 11:44:00 EST

Filed under: GM, Opel, Russia

With General Motors expected to file for chapter 11 bankruptcy protection in New York on Monday morning, negotiators in Germany scrambled to finalize a deal to save Opel from insolvency. Following a six-hour meeting in the German Chancellor's office in Berlin on Friday evening, a deal was finally announced by finance minister Peer Steinbrueck. Although an overall deal to transfer control of Opel from General Motors was reached, details are still being worked out and a final contract won't be signed for several more weeks.

Under the deal announced early Saturday morning, GM will retain a 35-percent stake in Opel, which would allow the automaker to continue sharing technology with the German brand. Russia's government-controlled Sberbank is providing most of the financing for the deal and also gets a 35-percent share. Canadian auto parts maker and contract assembler Magna International will own 20 percent and the remaining 10 percent will go to Opel employees.

The German government will also provide a $2.1 billion bridge loan to Opel to help it keep operating during the transition phase. A key to the deal was German government demands that Opel assets be protected from GM creditors during a US bankruptcy proceeding. Opel will apparently be placed into some sort of trust in order to keep it whole and preserve its value for the new majority owners. President Barack Obama agreed to the deal with German Chancellor Angela Merkel during a late-night phone call.

It's not known at this point how GM's UK operations at Vauxhalll figure in to all of this and whether any of it will be preserved, consolidated into Opel, or sold off separately.

[Source: Reuters]

German government approves majority sale of Opel to Magna, Russians originally appeared on Autoblog on Sun, 31 May 2009 11:44:00 EST. Please see our terms for use of feeds.

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Saab denies talks with Fiat

Damon Lavrinc — Tue, 05 May 2009 17:34:00 EST

Filed under: Saab, Fiat

On Sunday, the Financial Times reported Fiat was in the process of negotiating a deal with General Motors' European operations to take a stake in Opel, Vauxhall and Saab. Although both Fiat and its CEO, Sergio Marchionne, have confirmed talks are ongoing to acquire GM Europe while working on its partnership with Chrysler, according to Saab CEO Jan-Ake Jonsson, the Swedish automaker isn't part of the deal.

Jonsson said Saab is currently being courted by ten potential buyers, but Fiat isn't one of them. Saab spokesman, Eric Geers went on to tell Reuters, "We now have ten very serious interested parties which have visited us in Trollhattan ... we will narrow these down, and we are counting on a close (of a deal) in June, or the beginning of summer."

However, the report from the FT wasn't all smoke and mirrors. The Swedish government hand contacted Fiat about a possible tie-up with Saab several weeks ago, but "nothing concrete had been decided."

[Source: Reuters]

Saab denies talks with Fiat originally appeared on Autoblog on Tue, 05 May 2009 17:34:00 EST. Please see our terms for use of feeds.

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Fiat considering new company to combine Chrysler and GM Europe

Damon Lavrinc — Mon, 04 May 2009 01:44:00 EST

Filed under: Europe, Government/Legal, Plants/Manufacturing, Chrysler, GM, Opel, Vauxhall, Alfa Romeo, Fiat

Apparently, Fiat's alliance with Chrysler is only the beginning. According to a variety of reports coming out of the UK and Germany, the Italian automaker's expansion plans aren't limited to its 20% stake in Chrysler - Fiat is also considering acquiring General Motors' European operations, including Opel, Vauxhall and even Saab.

The result could be a new company that spins off Fiat, Lancia and Alfa Romeo, along with Chrysler and GM Europe, into one corporate entity worth around $106 billion and rivaling Volkswagen to become the world's second largest automaker behind Toyota.

In an interview with the Financial Times, Fiat's CEO Sergio Marchionne said of the union, "From an engineering and industrial point of view, this is a marriage made in heaven" and with the full support of the automaker's board, Marchionne hopes to have the deal completed in May, with shares of the new company - tentatively dubbed Fiat/Opel - available by the end of the summer.

Marchionne believes that the alliance would make Fiat a stronger entity in the global marketplace during the economic downturn and through merging Fiat and Opel's B- and C-segment platforms, along with absorbing Opel's larger D-platform and Fiat's sub-compact A-segment offerings, could save around 1 billion euros each year.

Of course, Fiat and Marchionne have a long road ahead. German trade unions are opposed to the deal, citing concerns about job losses and factory closures, and according to the German magazine WirtschaftWoche, Fiat's initial offer of $1.33 billion to acquire GM's European operations was considered too small by the General.

Marchionne is scheduled to present Fiat's plan to an assortment of German leaders later today and expect more to follow over the coming weeks.

[Source: Automotive News - Sub. Req. | Image Source: Vittorio Zunino Celotto]

Fiat considering new company to combine Chrysler and GM Europe originally appeared on Autoblog on Mon, 04 May 2009 01:44:00 EST. Please see our terms for use of feeds.

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Rumormill: Fiat could step in for GM in Europe, Latin America

Noah Joseph — Tue, 21 Apr 2009 13:29:00 EST

Filed under: GM, Opel, Vauxhall, Fiat

Forget about letting the ink dry: even while negotiations have been ongoing between Fiat and Chrysler, there have been rumors of potential additional or alternative alliances which the Italian auto group has purportedly been considering. Things may have been put on hold with Chinese automaker Chery and with Nissan, but talks about a tie-in with BMW are afoot, as were rumors of a merger with French auto group PSA Peugeot-Citroen, to say nothing of Fiat's role in Tata's acquisition of Jaguar and Land Rover. Recent reports, however, suggest that Fiat may be in the position to take over part of General Motors' organization in Europe and Latin America.

The arrangement would see Fiat take control of Opel and Vauxhall, which are slated to be spun off into a separate unit. The deal would not include Saab or Chevrolet's European operations (which are essentially Bowtie-badged Daewoos), but would include its operations in Latin America. The reports suggest the GM deal would be in addition to Fiat's arrangement with Chrysler. All told, between Fiat, Chrysler and GM's Latin American and European sales, the new group would form the second largest automaker in the world, with sales (based on current levels) coming in behind Toyota's.

With Fiat particularly strong in those two core markets, the deal could make sense, but it would hardly be the first time Fiat and GM were in bed together. Back in 2000, the two automakers brokered a deal to collaborate, which cost GM over $2 billion, and then cost it another $2 billion to get out of again in 2005 when Fiat got back on its feet. For his part, Fiat chairman Luca di Montezemolo has denied the reports, but CEO Sergio Marchionne may have some plans of his own.

[Source: Automotive News Europe - subs. req'd]

Rumormill: Fiat could step in for GM in Europe, Latin America originally appeared on Autoblog on Tue, 21 Apr 2009 13:29:00 EST. Please see our terms for use of feeds.

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Former BMW, VW boss Pischetsrieder reportedly touted as possible Opel chief

Noah Joseph — Mon, 20 Apr 2009 19:39:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Opel

If Opel makes it out of the General Motors era alive, its dealers want a bigger say in its recovery as an independent automaker. And by a bigger say, they mean taking a 20% stake in the company - and along with it, a new CEO. One of the candidates being touted as a potential new chief executive for a resurgent, independent Opel is none other than Bernd Pischetsrieder.

Sure, we still have to slow down to spell his name, but the seasoned automotive executive is no stranger to us. He served as the chief executive officer of BMW before being tapped for the top job in the Volkswagen Group, and after being replaced by Martin Winterkorn, Pischetsrieder chaired VW's Scania truck division through some difficult negotiations.

According to Automotive News Europe, the way Opel's largest German dealer group sees it, Pischetsrieder would be in a better position to negotiate with Detroit executives over the separation of the European unit, and they're probably right: He certainly has the experience and the clout, but we can't help but wonder if he'd manage to keep Opel from swallowing up other companies and turning into a megalithic auto group like the others that he has lead. Mind you, the thought of an Opel Veyron certainly sounds interesting....

[Source: Automotive News Europe - subs. req'd, Photo by ROLAND MAGUNIA/AFP/Getty]

Former BMW, VW boss Pischetsrieder reportedly touted as possible Opel chief originally appeared on Autoblog on Mon, 20 Apr 2009 19:39:00 EST. Please see our terms for use of feeds.

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Opel to spin off, GM will retain stake

John Neff — Fri, 27 Feb 2009 12:01:00 EST

Filed under: Europe, GM, Opel

After a day of worker protests across Europe at various General Motors plants, news comes today from Carl-Peter Foster (above), head of GM Europe, that Opel is planning to reorganize itself as a joint-stock company. GM would basically give up between 25-50 percent of its stake in the spun off company, with the hope that outside investors would make up the rest. The reorg would also likely include concessions by workers for lower pay as well as a restructuring plan to lower operating costs. The main obstacle to separating Opel from GM in the past has been the degree to which the two are intertwined, but a joint-stock company in which GM remains the largest shareholder allows the two to operate as closely as ever while severing some of those ties that bind. It may also set the stage for a detangling of Opel's models from GM's product portfolio over time, which would facilitate the outright separation of the brand from its parent company in the future.

In the meantime, Opel needs approximately 3.3 billion euros or $4.2 billion USD to stay solvent and GM is in talks with governments in Spain, the UK and Germany about receiving government aid. Opel is also submitting a business plan by the end of next week to four German states in which it operates plants, and the German federal government headed by Chancellor Angela Merkel will receive a similar plan by this Monday, March 2.

[Source: Bloomberg | Photo by THOMAS LOHNES/AFP/Getty]

Opel to spin off, GM will retain stake originally appeared on Autoblog on Fri, 27 Feb 2009 12:01:00 EST. Please see our terms for use of feeds.

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GM workers protest at European plants

John Neff — Thu, 26 Feb 2009 16:57:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, GM

Just as Saab and Saturn find their futures uncertain as General Motors tries to unload as much liability as possible, so do the automaker's European brands: Opel and its counterpart in the UK, Vauxhall. Europeans, however, have a different way of dealing with the finality of job loss than we Americans do. Where we Yanks might be more inclined to form a picket line and solicit honks of support from people driving by, Europeans like to get out on the street and protest... en masse. So on the same day that General Motors released a 2008 earnings report that was worse than expected, thousands of its workers in Europe marched outside factories in solidarity.

Reports say that protests have sprung up at two Opel factories in Germany as well as sites run by GM in Britain, France, Spain and Hungary. The best hope these workers have for their brands' survival is that GM spins off Opel and Vauxhall. Whether the two brands are sold to a third party or the spin-off is financed by a group of European Union countries is yet to be determined, if it ever will be. No one seems to be in the market for auto brands these days and, as EU officials admit, there's no precedent for pooling the resources of multiple countries to save a company. And just like the U.S. requested viability plans, German Chancellor Angela Merkel is demanding a "sustainability company concept" before her country would consider giving GM any aid.

[Source: Detroit Free Press | Photo by Ralph Orlowski/Getty]

GM workers protest at European plants originally appeared on Autoblog on Thu, 26 Feb 2009 16:57:00 EST. Please see our terms for use of feeds.

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Geneva '08 Preview: Opel/Vauxhall Meriva Concept

Noah Joseph — Wed, 06 Feb 2008 10:33:00 EST

Filed under: Concept Cars, Minivan/Van, Geneva Motor Show, Europe, GM, Opel, Vauxhall

GM's European divisions are preparing to unveil their latest show car at the 2008 Geneva Motor Show next month. The Meriva Concept is Opel and Vauxhall's study for what form the next Euro minivan could take.

The Meriva Concept, as previewed by the concept sketch above, draws on the previous GTC Coupe and Flextreme concepts and applies the theme to a monocab form, a segment in which Opel and Vauxhall account for one fifth of continental sales between the Zafira, Meriva and Agila MPVs. Expect the Meriva Concept to preview the direction that GM's European tall wagons will take in the near future, which could end up finding its way into a Saturn model or two on our side of the Atlantic. Press release after the jump.

[Source: Vauxhall]

Continue reading Geneva '08 Preview: Opel/Vauxhall Meriva Concept

Geneva '08 Preview: Opel/Vauxhall Meriva Concept originally appeared on Autoblog on Wed, 06 Feb 2008 10:33:00 EST. Please see our terms for use of feeds.

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Chevy and Saab set sales records in Europe

Erin Mays — Wed, 09 Aug 2006 19:55:00 EST

Filed under: Europe, Cadillac, Chevrolet, GM, Hummer, Saab, Earnings/Financials

Some of GM's European executives can sleep soundly these first few weeks of August, with Saab hitting record numbers in Europe, Chevrolet being up by 9.5 percent and overall sales in Eastern Europe growing a staggering 75 percent over July of 2005 on the performance of Chevy and Opel in the marketplace.

Opel/Vauxhall is also on track to make improvements the company promised in terms of market mix and quality of sales, according to a press release put out by GM Europe. The H3 is helping HUMMER sales in Europe, with the brand's numbesr having nearly quadrupled versus the first seven months of 2005, going from 269 to 983 units. Of course, that doesn't have quite the same ring to it as "up by 265 percent."

Opel/Vauxhall is still down a bit overall, which is impacting GM's overall market share in Europe. Cadillac is also down, thanks in part to the luke warm reception of the BLS sedan based on the Saab 9-3.

[Source: AutoSpectator]

Chevy and Saab set sales records in Europe originally appeared on Autoblog on Wed, 09 Aug 2006 19:55:00 EST. Please see our terms for use of feeds.

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Corsa VXR already being readied by Vauxhall

John Neff — Mon, 22 May 2006 17:05:00 EST

Filed under: Spy Photos, Europe, Hatchback

GM Europe just took the wraps off its new Corsa three-door hatchback and already the Euro auto scene has been flooded with spy shots of a VXR model being tested under the guise of creative camouflaging. Speculation on how much power the Corsa VXR's turbocharged 1.6L will produce range from 160 bhp to 200 bhp. We're leaning towards the latter figure, as it would put the Corsa ahead of the Renaultsport Clio, if only by a few ponies. 0-60 is said to pass in about six seconds and it will top out on the Autobahn at around 150 mph. Along with a more suitable sports suspension and bigger brakes, the Corsa VXR will don business attire better able to express its intentions that includes flared arches, bigger air intakes and larger wheels.

[Source: AutoExpress, pic courtesy of Channel4]

Corsa VXR already being readied by Vauxhall originally appeared on Autoblog on Mon, 22 May 2006 17:05:00 EST. Please see our terms for use of feeds.

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Opel Antara image gallery previews next Saturn Vue

John Neff — Thu, 11 May 2006 11:06:00 EST

Filed under: SUV, GM, Saturn

Considering that the recently unveiled production version of the Opel Antara will likely become the next Saturn Vue sometime between 2008 and 2009, we thought you might want to see it from all angles, including the interior. You can check out the specs in our post from yesterday, or check out GM Europe's full press release after the jump along with a few more official pics.

[Source: GM Europe]

Continue reading Opel Antara image gallery previews next Saturn Vue

Opel Antara image gallery previews next Saturn Vue originally appeared on Autoblog on Thu, 11 May 2006 11:06:00 EST. Please see our terms for use of feeds.

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