Autoblog

REPORT: Opel/Vauxhall CEO plans five-year product offensive

Jonathon Ramsey — Thu, 17 Dec 2009 17:29:00 EST

Interim Opel CEO Nick Reilly has been overseeing the German firm for all of six weeks. And over that scant month and a half, he's conjured the way forward for Opel and Vauxhall and seems determined to leave nothing undone. Chatting with Auto Motor und Sport, Reilly intends to give Opel a little SUV on the Corsa platform, an Opel version of the Mini, a continuation of the Agila and an all-new electric car.

Opel would also be greater master of its own fate: Opel's tie with Suzuki will continue even with VW's recent move, but other Opels like the next Corsa would be developed in Germany. Such a vision, along with his already avowed hybrid push, would keep Opel exceedingly busy over the next five years. If his plans are achieved, it could put them in a very good spot come 2013. But there's a long way to go before all of that happens -- in the short-term GM first has to sort out the funds to keep the company running properly at all.

[Source: Autocar | Image: Thomas Lohnes/Getty]

REPORT: Opel/Vauxhall CEO plans five-year product offensive originally appeared on Autoblog on Thu, 17 Dec 2009 17:29:00 EST. Please see our terms for use of feeds.

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REPORT: Minicar, EV on the way from Opel

Jonathon Ramsey — Mon, 07 Dec 2009 16:32:00 EST

Filed under: Budget, GM, Opel, Electric

General Motors has declared that Opel needs a minicar, a tiny little thing that can compete with runabouts like the Ford Ka and Peugeot 107. That's a fine sentiment here at the starting line, but to get to the finish GM will need to keep Opel running smoothly, get its Spark firing quickly (if indeed it aims to use that as an Opel), and lure some eyeballs away from the two dozen minicars currently in the segment and the ones on the way from the likes of Volkswagen and Toyota.

Opel showed off the Trixx Concept (pictured) five years ago, but it was left out back to die in favor of the Spark. Five years on, the Spark hasn't arrived, meanwhile the Ford Ka has solidified its position with 500,000 sales in the UK alone over the last 13 years, the equally cheap and cuter-than-kittens Fiat 500 is still winning awards and stealing hearts and the VW Up! is banging drums.

When Magna was going to purchase Opel it said it would have a minicar for the brand by 2012. GM gave no timeline for its arrival, but did say that it was also looking at battery-powered electric cars -- possibly an electric Spark with the help of Reva? Whatever it is -- as long as it's good -- it can't come too soon.

[Source: Automotive News - Sub. Req.]

REPORT: Minicar, EV on the way from Opel originally appeared on Autoblog on Mon, 07 Dec 2009 16:32:00 EST. Please see our terms for use of feeds.

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First Drive: 2011 Buick Regal prototype looks to be a good sport

Chris Paukert — Mon, 23 Nov 2009 11:55:00 EST

Filed under: Sedan, Performance, Buick, GM, First Drive, Luxury

2011 Buick Regal - Click above for high-res image gallery

There's an odd bit of historical deja vu at work here. Back in the late '60s and early '70s, General Motors wanted to shift a few sporty-ish four-cylinder models from its Opel division into America, so they turned to their Buick dealers. This didn't work out exactly as planned - merchandising these odd European ducks in an outlet best known for sober doctor's cars meant that the GT, Manta and Kadett never managed to make much of a dent in North America's automotive landscape. This time out, with the Opel Insignia-derived 2011 Buick Regal, GM knows it needs massively better results.

This is a Buick the likes of which we have never seen before.

While attending an early drive event for the new Regal last week, we reminded vice-chairman Bob Lutz about the last time his company attempted to sell Opels in Buick showrooms. He laughed his trademark raspy laugh, and reminded us that Car and Driver so loathed the 1968 Kadett that their review featured it photographed in a junkyard. With characteristic candor, Lutz tells us, "It actually wasn't a very good car." Of course, Maximum Bob knows full well that GM can't afford another lost in space Kadett. Does the Regal have what it takes to mollify these "sins of the father" and put Buick on the right track? Click through to the jump to find out.

Gallery: First Drive: 2011 Buick Regal

Continue reading First Drive: 2011 Buick Regal prototype looks to be a good sport

First Drive: 2011 Buick Regal prototype looks to be a good sport originally appeared on Autoblog on Mon, 23 Nov 2009 11:55:00 EST. Please see our terms for use of feeds.

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Rumormill: Bob Lutz drops more Buick Regal GS, high performance wagon hints

Jonny Lieberman — Sun, 15 Nov 2009 10:58:00 EST

Filed under: Sedan, Performance, Wagon, Buick, Opel, Rumormill

Opel Insignia OPC Sports Tourer -- Click above for high-res image gallery

While we were talking about the Escalade EXT launch with Susan Docherty (don't ask) during the Regal reveal at the Hollywood Palladium last week, Car & Driver's Steve Siler was pushing Maximum Bob about sportier versions of the newest Buick. Now, we heard mumblings about a new Buick Regal GS last month, but that was just dealer hearsay. Siler's report is straight from Lutz's mouth, and while he's not exactly the most reliable GM exec we've ever talked with, he does seem to have his finger on the General's performance pulse.

To summarize a bit, a 335-hp, all-wheel-drive manny-tranny version of the Regal might be coming, labeled with the legendary GS badge. There might even be a wagon version of the top of the line Regal - maybe even one with GM's eLSD torque vectoring. In fact, Lutz made it sound like GM might just import the 325-hp turbocharged 2.8-liter V6 Opel Insignia OPC Sports Tourer, crank up the boost a smidge and slap a Regal GS badge on it - which is more than totally fine with us. In fact, Siler suggests that what GM ought to do is make the tip top Regal wagon-only - sort of like the MazdaSpeed3 or WRX STI. Maybe call it the Buick Regal GSX? But like most such things involving GM these days, we'll believe it when we see it.

Gallery: Frankfurt 2009: 2010 Opel Insignia OPC Sports Tourer

[Source: Car & Driver]

Rumormill: Bob Lutz drops more Buick Regal GS, high performance wagon hints originally appeared on Autoblog on Sun, 15 Nov 2009 10:58:00 EST. Please see our terms for use of feeds.

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GM Executive VP Nick Reilly named interim CEO at Opel/Vauxhall

Noah Joseph — Tue, 10 Nov 2009 17:30:00 EST

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

It's been one heck of a week for Opel. After months of negotiations between Magna and its partners on the one hand and General Motors on the other, the American parent company opted to hold on to its European subsidiary. In the wake of the decision, Opel's chief executive Carl-Peter Forster jumped ship, leaving the company's future hanging in the balance as he looked to move on to greener pastures.

The General, eager to capitalize on its decision, has wasted no time in getting its European assets back online, and has already announced the appointment of an interim CEO to steer the company until a suitable full-time replacement can be found. But contrary to reports that suggested Bob Lutz could get the job, GM has named Nick Reilly to the post.

As executive VP of General Motors and president of its international operations, Reilly is no stranger to Opel and its British counterpart Vauxhall. The English-born exec has held a number of posts for GM in Europe, and presently operates out of Shanghai. While taking the reins at Opel/Vauxhall, Reilly will continue to oversee the auto giant's vast global operations, but will rely on his legion of regional managers to take more direct control. Follow the jump for the full press release, including Reilly's bio.

[Source: GM | Photo by PHILIPPE LOPEZ/AFP/Getty]

Continue reading GM Executive VP Nick Reilly named interim CEO at Opel/Vauxhall

GM Executive VP Nick Reilly named interim CEO at Opel/Vauxhall originally appeared on Autoblog on Tue, 10 Nov 2009 17:30:00 EST. Please see our terms for use of feeds.

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REPORT: Lutz to step in as interim Opel chairman

Chris Shunk — Sun, 08 Nov 2009 09:03:00 EST

Filed under: GM, Opel, Vauxhall

Just hours before General Motors announced that it wasn't going to sell Opel, GM Europe head Carl-Peter Forster said publicly that Opel would be better off under the control of Magna. Talk about bad timing. Now that GM is keeping Opel, Forster is out as the head of the General's European operations. A couple of familiar names will step in, at least on an interim basis.

Bloomberg reports that GM Vice Chairman and head of Marketing and Communications Bob Lutz is taking over as interim chairman of the Opel supervisory board until a permanent leader can be chosen. The bombastic Lutz has suddenly found himself with increasing responsibility after semi-retiring back in April. Fellow GM exec Nick Reilly will lead the Opel and Vauxhall units until a replacement can be found.

GM CEO Fritz Henderson said in a statement that the hunt is on for a new Opel CEO and that no other management moves were imminent. Henderson went on to say that Opel improved under Forster, which is a real compliment when you consider that Forster replaced Fritz as head of GM Europe back in 2004. Word on the street is that GM could pick a German executive for the Opel post, due mostly to the fact that Germany wasn't very happy about GM's decision to scuttle the sale to Magna. Magna's plan called for fewer layoffs within Germany and more in other European countries.

[Source: Bloomberg]

REPORT: Lutz to step in as interim Opel chairman originally appeared on Autoblog on Sun, 08 Nov 2009 09:03:00 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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BREAKING: GM board opts to call off Opel sale

Chris Shunk — Tue, 03 Nov 2009 18:25:00 EST

Filed under: Car Buying, Europe, GM, Opel

After months of negotiations with supplier Magna and its Russian partner Sberbank, General Motors has decided not to sell its Opel unit. The General mentioned in the post-jump press release that the new board of directors came to the decision to keep Opel due to GM's recovering financial situation coupled with an improving business environment in Europe. GM's move to keep Opel comes just one week after EU's Directorate-General for Competition began investigating the sale to Magna to be sure it was based on sound financial footing and not because of political influence from Germany.

GM CEO Fritz Henderson added in the company's release that the process was difficult for all parties but in the end "our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall's long-term future."

Now that GM plans to keep Opel in its brand portfolio, the next move is to proceed with a painful restructuring that could see the loss of 10,000 jobs and the elimination of 30% of the Euro unit's structural costs. The reported tally for the restructuring could cost GM upwards of $4.4 billion, and some of that could come courtesy of cash received as part of the company's $50 billion US government bailout.

Now that GM is out of bankruptcy, the company is reportedly no longer barred from using bailout funds for countries or regions outside of the US. It's also possible that GM could get loans from Germany and or Great Britain to finance the restructuring. The Detroit MI-based automaker also intends to work with European unions to develop a plan that contributes to Opel's restructuring. Hit the jump to pour over GM's press release.

[Source: Detroit News]

Continue reading BREAKING: GM board opts to call off Opel sale

BREAKING: GM board opts to call off Opel sale originally appeared on Autoblog on Tue, 03 Nov 2009 18:25:00 EST. Please see our terms for use of feeds.

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Opel sale on hold, GM asked to have a word with EU Commission

Jonathon Ramsey — Mon, 26 Oct 2009 07:26:00 EST

Filed under: Europe, GM, Opel

The EU's Directorate-General for Competition (EUDGC) is looking at the Opel deal that should have been concluded already, and is asking questions of Germany and GM. Principally it is trying to resolve the issue of state aid; it was reported before that if Opel was purchased by Magna then the German government would provide financial assistance. However, if the bidder GM is said to have preferred, Belgian investment fund RHJ, won, then there would be no money coming from the German authorities.

The EUDGC wants to ensure that Magna was chosen for sound business reasons that had nothing to do with politics. It also wants to make sure that money promised to Magna was also clearly made available to other bidders. Lead GM negotiator John Smith said "The German Government was asked by DG Competition to communicate its position on financing availability to GM and the Opel Trust Board." And Germany's Economic Minister has asked GM to also tell the EU that it chose Magna based on reason and logic.

Meanwhile, GM continues to work with Magna on finalizing issues relating to the sale. No matter what happens with the EU, GM has to work with Magna right now because Magna is making decisions for Opel, such as whether to close down an Opel plant in Zaragoza, Spain. The EUDGC will want to complete its investigation in a timely manner, since having to unwind -- or redo -- what has taken six painful months to put together would be a massive blow to all involved.

[Source: GM Fastlane Blog via Automotive News - Sub. Req.]

Opel sale on hold, GM asked to have a word with EU Commission originally appeared on Autoblog on Mon, 26 Oct 2009 07:26:00 EST. Please see our terms for use of feeds.

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REPORT: Chevrolet to take larger role at GM, account for 70% of total volume

Jonathon Ramsey — Mon, 12 Oct 2009 08:29:00 EST

Filed under: Chevrolet, GM

Forget about more cowbell, for GM it's all about more Chevy -- at least, that's the situation for Chevrolet's new VP Brent Dewar. So far this year the Bowtie has posted more than 60% of GM's North American volume, but Dewar wants that to get to 70%. "As Pontiac goes away, Saturn goes away," Dewar said, "Chevrolet has to step up. The 70 percent target is the right kind of number we need to work on."

The real perspective on that challenge is in the numbers: GM's market share was 22.4 percent a year ago and is now 19.7 percent. However, while GM is out to increase overall market share it has half as many brands as it did last year: Pontiac and Saturn are dead, Saab and Hummer have found other homes.

For Dewar, the general (if slight) upward trend in sales, as well as the coming Cruze and the Volt, will help Chevy achieve that number. But beyond that we have no idea what he plans to use to breach the 70 percent figure, and we find it interesting that Chevy is trying to make up for more even with Cadillac's and Buick's imminent models. Nor is it clear how GM will maintain its overall numbers globally without Opel, but we look forward to finding out.

[Source: Automotive News - Sub. Req.]

REPORT: Chevrolet to take larger role at GM, account for 70% of total volume originally appeared on Autoblog on Mon, 12 Oct 2009 08:29:00 EST. Please see our terms for use of feeds.

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Frankfurt 2009: Opel Astra makes its debut under the lights

Jeremy Korzeniewski — Thu, 17 Sep 2009 11:41:00 EST

Filed under: Frankfurt Motor Show, Hatchback, Opel

2010 Opel Astra - Click above for high-res image gallery

By now, you've likely already seen official shots of the 2010 Opel Astra, both inside and out. Of course, catching a glimpse of a new shape under the harsh lighting of an auto show often brings a different point of view than the automaker's own glitzy press shots.

In the case of the latest Astra, though, the new car looks nearly as fetching caught with the lenses of our own DSLRs as it did in GM's official photography. We especially like the new Astra's interior furnishings, which are a major step up from the current model's rather boring and somber duds.

While the 2010 Astra won't be coming Stateside as a Saturn like the previous model, GM has promised to bring the latest Detla-based car to American shores (probably in sedan form) wearing the trademark Buick badge and chrome waterfall grille, and none of those plans are expected to change now that The General has offloaded a majority stake in Opel to Magna. Check out our high-res shots below of the 2010 Astra live from Frankfurt.

Gallery: Frankfurt 2009: Opel Astra

Frankfurt 2009: Opel Astra makes its debut under the lights originally appeared on Autoblog on Thu, 17 Sep 2009 11:41:00 EST. Please see our terms for use of feeds.

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Frankfurt 2009: Bring us the 2010 Opel Insignia OPC Sports Tourer

Jonny Lieberman — Wed, 16 Sep 2009 14:39:00 EST

Filed under: Frankfurt Motor Show, Performance, Wagon, Europe, Opel

2010 Opel Insignia OPC Sports Tourer - Click above for high-res image gallery

Remember this? "More wagons! More wagons!" Well, here's another. Meet the Opel Insignia OPC Sports Tourer. Salient facts: 325-horsepower turbocharged 2.8-liter V6, AWD, six-speed manual, eLSD torque vectoring and it's a station wagon. Oh, and get this -- it's built from off the shelf GM parts. Serious.

For instance, that fancy-pants eLSD torque vectoring system comes from the Saab Turbo X. All the rest of the pieces are General Motors parts bin. Ready for the best part? You can't have it! Ha ha ha. Of course neither could we. Would we totally rock a slightly larger, good looking EVO X-ish station wagon? Hell to the yeah. Which part is the good GM again?

Gallery: Frankfurt 2009: 2010 Opel Insignia OPC Sports Tourer

Frankfurt 2009: Bring us the 2010 Opel Insignia OPC Sports Tourer originally appeared on Autoblog on Wed, 16 Sep 2009 14:39:00 EST. Please see our terms for use of feeds.

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You didn't think the battle for Opel was over, did you? Belgium reportedly asking EU to investigate

Jonathon Ramsey — Sun, 13 Sep 2009 10:36:00 EST

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

When GM decided to hand 55% of Opel to Magna, you didn't think the Belgians were just going to have some waffles and call it quits, did you? Oh no. Belgium's prime minister made a call to the EU president about the deal, and the EU Competition Commissioner Neelie Kroes told a Belgian newspaper, "If something happens against the rules, I will take action."

According to the prime minister, however, the rules have already been broken. Even though Magna has said it will need to trim more workers than expected, the Belgian leader said, "Financial aid given by a country that guarantees that the factories in their country don't close is against EU rules." The sale to Magna has observers screaming, "Politics!" but has made German Chancellor Angela Merkel look very good in the run-up to elections on September 27; with EU scrutiny all she really needs to hope for is that it takes them longer than two weeks to come to an adverse finding, if that should happen.

Opel labor, however, isn't so pleased anymore now that Magna has said it will need to eliminate more jobs than it originally proposed. Initial estimates put job losses at 2,500 workers in Germany; now the Canadian company is saying 4,100 jobs could be lost. It appears that Opel workers plan to assert themselves if Magna does anything differently than it said it would. In addition, labor wants "a veto right over job cuts, transfer of production or plant closures," which are the kinds of rights VW labor unions have. If you ask us, the dust on this one is nowhere near settled.

[Source: Automotive News, sub req'd]

You didn't think the battle for Opel was over, did you? Belgium reportedly asking EU to investigate originally appeared on Autoblog on Sun, 13 Sep 2009 10:36:00 EST. Please see our terms for use of feeds.

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BREAKING: GM board recommends coughing up 55% Opel stake to Magna, Sberbank

Jeremy Korzeniewski — Thu, 10 Sep 2009 11:30:00 EST

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

Finally, after what seems like an eternity of protracted negotiations, bickering and stalling tactics, General Motors has agreed to sell a majority stake in its European operations to Magna International and its Russian financial partner Sberbank. Under the terms of the deal, 55% of Opel and Vauxhall will be owned by Magna/Sberbank; The General will hold on to a 35% stake and employees of the two companies will hold the final 10 percent.

Naturally, the European automakers will continue to offer the recently redesigned Astra and Insignia, and future technologies - such as the extended-range electric powertrain that will be used in the upcoming Ampera - will be shared between the U.S. and European companies.

According to Automotive News, there are still strings attached to the deal and the German government doesn't expect anything to be completely finalized until after the next set of elections scheduled to take place in Germany on September 27, so the saga is likely to continue. Click past the break for the official statement from GM.

[Sources: General Motors; Automotive News - sub. req'd]

Continue reading BREAKING: GM board recommends coughing up 55% Opel stake to Magna, Sberbank

BREAKING: GM board recommends coughing up 55% Opel stake to Magna, Sberbank originally appeared on Autoblog on Thu, 10 Sep 2009 11:30:00 EST. Please see our terms for use of feeds.

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GM would rather have Opel, Vauxhall fall into insolvency than sell to Magna?

Chris Shunk — Wed, 09 Sep 2009 08:40:00 EST

Filed under: Europe, GM, Opel

While General Motors was going through its 42 day bankruptcy period, one of the stories that didn't receive much play was the sale of GM's Opel brand. The major players in the Opel sale appear to be the German government, Canadian supplier Magna and Belgian private investor RHJ International.

The German government was reportedly willing to front 3.4 billion euros toward the deal, as long as Magna was the buyer. Magna has said that it wouldn't close any German factories if it purchased, making the supplier attractive to the German government. But Magna is tied to a Russian company that would receive GM's intellectual property if the sale is made final.

The Daily Mail in the UK is reporting that the General would rather push Opel into insolvency than sell to Magna. When GM went into Chapter 11, Opel was placed in a trust. Now that GM is free of bankruptcy and sales have picked up (slightly) in Europe, the Detroit-based automaker could possibly again own Opel by working through German insolvency laws. To make matters a bit more complicated, Opel's unions are threatening to demand pay raises and bonuses if the company isn't sold to Magna.

The sale of Opel looks like it's becoming more of a mess than originally anticipated. The status of Opel could become clearer by the end of this week, with a Opel on the agenda during a major board meeting at GM today and tomorrow.

[Source: Daily Mail | Image Source: Ralph Orlowski/Getty]

GM would rather have Opel, Vauxhall fall into insolvency than sell to Magna? originally appeared on Autoblog on Wed, 09 Sep 2009 08:40:00 EST. Please see our terms for use of feeds.

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REPORT: Opel labor union goes on the offensive, GM negotiator meets with German feds

Jonathon Ramsey — Wed, 26 Aug 2009 10:58:00 EST

Filed under: Europe, Plants/Manufacturing, GM, Opel, UAW/Unions

The battle for Opel has added another front: Opel labor unions at two of the company's German factories retracted an agreement made last year to forgo vacation bonuses. The move demands that General Motors pay the laborers €70 million ($100.2M U.S.) by next week, the amount that they agreed to give up when GM was trying to rescue itself. Workers at two other Opel factories in Germany are expected to make the same move some time this week. The workers want GM to sell to Magna, and if The General doesn't make its intentions plain soon, the next step will be for Opel labor to demand the wage hike they waived last year, which would see the automaker owe another several hundred million euros.

According to Automotive News, GM's board met to discuss which bidder, Magna or RHJ, it would go with, but instead of making a decision it sent its lead negotiator back to Germany to talk to government officials. As of last week, there were rumors of GM wanting a buyback option for Opel, which could get GM quickly back into Europe when the company restores its fortunes. The option seemed to make RHJ the leading bidder, but not the one German government or labor wants.

If RHJ wins, it will get no state aid. If Magna wins, it has been pledged €4.5B ($6.4B U.S.) in government loans. The disadvantage could cause RHJ to deal with Opel drastically, which would greatly displease a whole lot of Germans. Perhaps that is why there is now talk of GM not selling Opel at all, instead looking to raise $4.3 billion to keep Opel in the family. With GM barely out of bankruptcy, and with economies still shaky, observers aren't sure where GM would get that kind of money. It is thought that GM will announce its intentions in the next day or so.

[Source: Automotive News, sub req'd]

REPORT: Opel labor union goes on the offensive, GM negotiator meets with German feds originally appeared on Autoblog on Wed, 26 Aug 2009 10:58:00 EST. Please see our terms for use of feeds.

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GM issues a 'No-Decision' on fate of Opel, German government not happy

Jonathon Ramsey — Mon, 24 Aug 2009 07:58:00 EST

Filed under: Europe, GM, Opel

General Motors was meant to decide who would be the winning bidder for Opel last Friday. But it didn't. Instead, GM asked the German government for more information on federal financial assistance available to buyers. The German government would like Magna to take over Opel as it vowed to retain a huge chunk of jobs in Germany, but GM has given every indication of preferring Belgian investment fund RHJ.

GM wants to know how much money RHJ would get in case it was chosen to buy Opel. It looks like GM still has issues with Magna buying Opel and is looking for a way to choose RHJ and save at least a little face with the German government. If RHJ can get an attractive financial package from the feds, it can also save more jobs than it might be inclined to otherwise, and GM doesn't have to worry about Russian competitors using its own technology.

The German government wants none of it, though. It has called on the United States government to get GM to make a decision. That isn't likely to happen, but it shows how intense things are with Opel, politicians, labor and upcoming elections. On a side note, the BBC reported that part of GM's plan could include a buy-back option for Opel, which, if true, would probably make a lot more sense for RHJ than Magna.

[Source: Auto News, sub req'd]

GM issues a 'No-Decision' on fate of Opel, German government not happy originally appeared on Autoblog on Mon, 24 Aug 2009 07:58:00 EST. Please see our terms for use of feeds.

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RHJ ups offer for Opel, commits to Vauxhall, has "good chances of winning"

Jonathon Ramsey — Wed, 12 Aug 2009 08:30:00 EST

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

Belgian investment firm RHJ, once considered a back-up bidder for Opel, is now considered a front-runner - at least according to its own CEO. RHJ head Leonhard Fischer has already told U.K. officials that the company is committed to retaining the Vauxhall name, and speaking to German newspaper Handelsblatt, he said he likes his chances in the run for Opel.

Opel workers still want GM to settle on Magna and have asked the German government to nudge to GM make that happen. In response, RHJ is considering lowering the amount of aid it will request from the federal government to an amount that is €900 million ($1.27B U.S.) lower than the number Magna has requested. The flip side: RHJ would pay GM less in royalties to make up the loss.

Not that The General seems to mind. GM's chief negotiator said that a deal with RHJ was "virtually wrapped up" and just waiting on government approval. A deal with RHJ would also give GM fewer headaches on the Russia and intellectual property issues - problems with a Magna deal that GM has described as "significant." With a basic deal between GM and RHJ concluded, the main dealings now appear to concern GM and the federal authorities. And if RHJ wins, the question everyone will want to know is: will RHJ be Cerberus with a Flemish accent?

[Source: Automotive News - Sub Req.]

RHJ ups offer for Opel, commits to Vauxhall, has "good chances of winning" originally appeared on Autoblog on Wed, 12 Aug 2009 08:30:00 EST. Please see our terms for use of feeds.

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Buick expanding lineup to six models in two years

Sam Abuelsamid — Tue, 11 Aug 2009 11:28:00 EST

Filed under: Sedan, Crossover, Buick

During our preview this morning of upcoming products from both Buick and GMC, we learned that the Buick lineup will expand its lineup to include six models within the next 24 months. Joining the LaCrosse and Enclave (it sounds like the Lucerne is on its way out) will be two new sedans and two new crossovers.

One new four-door will be a mid-size sedan based on the Opel Insignia and possibly wear the Regal nameplate. The other will be a smaller, entry level compact sedan based on the new Opel Astra. We also saw a teaser last week of the new compact crossover for Buick that's basically a rebadged Saturn Vue. An even smaller CUV based on the Delta platform will also be added.

Over at GMC, a Denali version of the Acadia will likely be added along with another small CUV that could be a competitor for the upcoming mini countryman.

Buick expanding lineup to six models in two years originally appeared on Autoblog on Tue, 11 Aug 2009 11:28:00 EST. Please see our terms for use of feeds.

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