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Posts Tagged ‘adam opel’

Opel Plant Closes in Bid to Save GM Europe

Bochum plant victim of desperate turnaround bid.

by on Dec.05, 2014

The Bochum, Germany plant, which produced the Opel Zafira, was closed by Adam Opel.

General Motors has taken a critical step forward in its bid to salvage its money-losing European operations, shuttering an unneeded plant in Bochum, Germany.

The closure of the factory, which once employed as many as 22,000 workers, is central to a bid to reverse 15 years of losses by the Adam Opel subsidiary. At the same time, GM plans to invest 4 billion Euros, or nearly $5 billion into its European business to expand its product portfolio and improve the competitiveness of its remaining factories.

The Last Word!

The maker now says it expects to achieve a break-even at Opel by mid-decade. But that goal has been delayed so long that industry analysts are playing wait-and-see before declaring GM’s latest turnaround strategy a success. (more…)

GM Investing More Than $1 Billion in Plants in Europe, North America

Backing reflects confidence in future products.

by on Nov.24, 2014

General Motors is investing more than $1 billion in to plants in Europe and North America, including $40 million into its plant in Pontiac, Michigan.

General Motors is investing more than $1 billion in plants in Europe and North America to ensure the former achieves its goal of profitability while the latter can handle updates to existing vehicles as well as any new products.

Despite the fact that GM Europe has lost money for 17 years, the automaker plans to invest more than $300 million in Adam Opel’s home base in Rüsselsheim, outside of Frankfurt, Germany.

A Real Performer!

Mary Barra, GM’s chief executive officer, said that a new model will be produced at Opel’s plant in Rüsselsheim by the end of the decade.

“This SUV will be the brand’s second flagship alongside the Insignia,” Barra said. As announced in March, $300 million will be invested in Opel’s Rüsselsheim plant to meet future requirements,” Barra said. (more…)

Opel Takes Over GM Europe Operations

New change brings focus on entry-level small cars.

by on Jul.22, 2014

GM folded its European operations in the newly branded Opel Group as part of its plans to return to profitability.

General Motors plans to make its European operations profitable are taking shape as the automaker has rebranded its European unit as the Opel Group and a renewed its focus on small, profitable cars.

The re-branding took effect July 1. The new organization is based in Rüsselsheim, Germany, and will also oversee Chevrolet’s operations in Russia and Cadillac in Europe.

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“Today, we are more than just Opel/Vauxhall,” Karl-Thomas Neumann, CEO of the management board of Opel Group, said in a statement. “With the Opel Group, we align our organizational and legal entity structure in Europe with the business operations. (more…)

GM Pulls Opel Out of China; Will Play Larger Role in U.S.

New move in global brand realignment.

by on Mar.31, 2014

The Opel Adam S is not going to be available in China as GM is pulling the brand out of the country.

As part of a continuing global brand realignment, General Motors has pulled Opel out of China. The move comes barely a month after the Chevrolet brand was yanked out of Opel’s home market in Europe.

German-based Opel has been struggling to gain traction in China since entering the market there two decades ago. Even though GM is the second-largest manufacturer in the Chinese market – generating 3.16 million sales in 2013 – Opel’s 22 dealers sold a mere 4,365 vehicles there last year.

Stay on Top!

But Opel won’t vanish entirely. Its product engineering operations will continue to assist in the development of new products for China – as well as for the U.S., Opel announcing it will produce a new model for Buick that will be exported to the States later this decade. (more…)

GM Opel Sale to Magna-Sberbank Delayed, Again

Company now says that it will go the November Board Meeting.

by on Oct.23, 2009

Critics contend that Germany, as the largest potential contributor of funding -- €4.5 billion ($6.8 billion) -- unfairly manipulated plant closings to keep more jobs there.

Critics contend that Germany unfairly manipulated plant closings to keep more jobs.

Our favorite blogger covering the ongoing Opel saga, John Smith of GM, said this morning that the Magna/Sberbank deal was delayed until at least the regular GM Board of Directors Meeting on November 3.

The sticking point now appears to be the financing that allegedly tilted the decision to Magna – how much, and by what governments?

Smith, who is the lead negotiator on the sale, implied that the deal would be ready to go by November after months of delay. The GM Board last reviewed the matter in September and instructed Smith to proceed with the Magna-Sberbank deal.

However, even if the GM Board approves the sale next month, it is still not clear that all the legal approvals from the European Union will be in place.

Since approval was given for the sale to the Canadian-Russian consortium, the European Union has been reviewing the Opel investor process and the circumstances surrounding the selection of Magna-Sberbank. A key document appears to be a letter from German Economics Minister Karl-Theodor zu Guttenberg that sets forth terms.

Do It Now!

Do It Now!

Critics of the deal contend that Germany, as the largest potential contributor of funding — €4.5 billion ($6.8 billion) — unfairly manipulated plant closings to keep more jobs there. Opel/Vauxhall also has efficient plants in Spain and the United Kingdom.

(more…)

At Least Three Bids Received for GM’s Ailing European Operations

U.S. maker setting no firm timeline to decide on sale.

by on May.20, 2009

At least three bidders are blitzing Opel with takeover bids. It could take General Motors months to decide on a winning offer.

At least three bidders are blitzing Opel with takeover bids. It could take General Motors months to decide on a winning offer.

At least three potential buyers have submitted bids that could lead to their acquiring all, or at least a substantial stake in General Motors’ ailing German subsidiary, Adam Opel GmbH.  Close sources say a fourth bidder may have submitted an offering of its own through the German government before the Wednesday evening deadline.

“The physical receipt of the bids, I can’t confirm,” said GM’s European spokesman Chris Preuss, but another source indicated they’d been handed over in time to meet the deadline.

So far, only one bidder has confirmed its participation in the process.  The Italian automaker Fiat SpA, issued a statement noting it was bidding for both Opel and GM’s British counterpart, Vauxhall.

Other investors believed to be seeking all or part of Opel include the U.S. investment fund, Ripplewood, which has, among its team the former Chrysler Corp. President Tom Stahlkamp.  And the Canadian-based automotive mega-supplier, Magna International, is also bidding, a senior source confirmed to TheDetroitBureau.com.  Who the late bidder might be remains a mystery.

Each of the three “has its advantages and disadvantages,” according to a senior insider.  Fiat has been the most open aggressive bidder and arguably offers the grandest plans for bringing Opel into its fold. (more…)

Will Overseas Growth Save or Kill General Motors?

Rapid expansion may have contributed to carmaker’s crisis.

by on Feb.23, 2009

Buick van in Shanghai, where GM is now a leading maker.

A Buick van in Shanghai, where General Motors is now among the leading makers.

For a long time, General Motors executives have insisted — often quite vociferously — that they had a serious plan for restoring the company to profitability. The company’s multi-dimensional strategy would pay huge dividends at some point in the future, they repeatedly promised during the years George W. Bush occupied the White House.

The strategy set in place by former GM chairman Jack Smith, which was built around the company’s broad overseas expansion, is increasingly unlikely to survive the company’s dramatic restructuring. During the Bush-era, however, talking about the strategy quite frequently helped GM’s executives divert attention from the missteps that have now left the company locked into a destructive downward spiral.

(more…)