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Posts Tagged ‘opel news’

GM Stock Could Pop on Opel Sale

Sale of unprofitable business could net shareholder windfall.

by on Feb.20, 2017

Mary Barra, GM chairman and CEO, met with leaders in Germany to assuage concerns about the potential sale of Opel to PSA.

Shareholders reacted skeptically to last week’s announcement that General Motors was in discussions to sell off its money losing European operations anchored by the Opel and Vauxhall brands to the Paris-based PSA Group.

But the weekly financial magazine Barron’s gave the proposed sale of Opel a boost when it said GM’s share could increase in value by as much as 35% if the deal was finalized and GM succeeds in finishing the sale.

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If the deal goes through, it could net GM as much as $1 billion in cash, Barron’s says, citing analysts. However, the real value from the sale would come from offloading a money-losing business and refocusing on operations in China, Latin America and North America, it said. (more…)

GM, PSA Getting Pushback on Potential Opel Deal

German, British unions and governments against the sale.

by on Feb.16, 2017

GM is re-examining its European operations, specifically, the UK, in light of the "Brexit" vote.

General Motors’ plans to sell off its money-losing Opel unit is running into political and union opposition in both Germany and Great Britain.

GM is proposing to sell Opel to the French-based PSA Group, which it is assumed will move to reduce costs, shed some of the excess capacity and move to consolidate product lines. Excess capacity has long been identified as a major problem in the European auto industry but governments and unions throughout Europe have made it extremely difficult to close plants

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Germany’s federal government and influential unions, which are already facing the threat of major job losses at Volkswagen in the wake of the diesel scandal, have moved quickly to criticize the proposed GM-PSA deal. (more…)

GM Considers Sale of Struggling Opel to France’s PSA

Automaker's European unit hasn't been profitable since 1999.

by on Feb.14, 2017

Opel chief Karl-Thomas Neumann showed off the Euro version of the Bolt in Paris.

General Motors is once again considering the sale of its money-losing European operations and has entered talks with French automaker Peugeot’s parent, the PSA Group.

The automakers both announced plans to explore new “strategic initiatives” on Tuesday, those statements coming exactly a week after GM confirmed it had once again gone into the red in Europe. It has not earned a profit there since 1999, despite repeated promises to fix the problems at its Opel and Vauxhall brands.

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Noting they already have “three projects in Europe” underway, GM and PSA said they “confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA,” though the joint statement cautioned “There can be no assurance that an agreement will be reached.” (more…)

First Look: Retro-Futuristic Opel GT Concept

Sports car prototype to share Geneva stage with Mokka X SUV.

by on Feb.18, 2016

The Opel GT Concept will make its formal debut at the 2016 Geneva Motor Show.

German-based Opel doesn’t have much visibility in the U.S. market, but it could generate quite a buzz here – as well as in the home European market – when it formally unveils its new GT Concept at the Geneva Motor Show early next month.

The original Opel GT, dating back to the 1970s, was one of the few – and last – models imported under that brand name, though Opel designs have since made it across the Atlantic and shared with sibling General Motors brands. The old Saturn Astra and the new Buick Cascada convertible are two examples.

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The new Opel GT Concept harkens back to the original 2-seat sports car concept, the Opel Experimental GT, of 1965. It was followed a year later by the Vauxhall XVR from Opel’s British twin. A production version went on for a five-year run, from 1968 to 1973.

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GM’s Opel Set to Offer a New Battery-Electric Vehicle

Will share platform of near-twin Chevrolet Bolt.

by on Feb.12, 2016

GM CEO Mary Barra with the Chevy Bolt, which is the basis for Opel's new EV offering, the Ampera-e.

General Motors’ European Opel subsidiary is set to get its first long-range battery-electric vehicle in 2017.

Speaking at an industry conference, GM CEO Mary Barra said Opel will launch the new Ampera-e in a bid to target a mainstream audience looking for longer range than current electric vehicles can offer.

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“Like its twin, the Chevrolet Bolt EV, the Ampera-e promises to transform the electric vehicle market in Europe as the first EV that combines long range at an affordable price,” Barra said. (more…)

Opel Keeps an Eye on Your Eyes

Prototype system uses eye-tracking tech to aim headlamps.

by on Mar.24, 2015

Opel wants to let your eyes aim your headlights.

Take a late night walk down a dark country lane and you’re likely to aim your flashlight precisely where you want to look. Imagine having a car that’s equally intuitive.

That’s the idea behind a new system being developed by Opel, General Motors’ European subsidiary, which uses an eye-tracking system to determine exactly where a driver is looking.

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“We’ve been pursuing this concept of controlling the direction and intensity of light based on where the driver is looking for around two years,” notes Ingolf Schneider, the director of lighting technology at Opel. “The more we understand the benefits of this technology, the more intensively we push ahead.”

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GM Slashing Presence in Russia

Opel to pull out, Chevy scaling way back in long-term shift.

by on Mar.18, 2015

Hello, we must be going. A GM Niva rolls down the Avtovaz assembly line. Plans for an updated car have been scrubbed.

General Motors plans to largely abandon the Russian market, a move that goes well beyond the short-term production cuts announced by key rivals like Ford Motor Co. in response to the economic crisis crippling the heart of the former Soviet Union.

GM’s German-based Opel brand will pull out of Russia entirely by the end of this year, while Chevrolet will scale back to focus on a handful of products such as the Corvette and Camaro. The maker will continue to market Cadillac products to Russia’s luxury buyers, but production will shift back to the U.S.

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“This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate,” said GM President Dan Ammann. “This decision avoids significant investment into a market that has very challenging long-term prospects.”

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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 Drops $750 Million on Opel Severance Plans

Maker spending about $165,000 per worker at Bochum plant.

by on Jun.17, 2014

The Bochum, Germany plant, which produced the Opel Zafira, is slated to close by the end of the year.

General Motors has taken a critical step in the restructuring of Opel by agreeing to spend $750 million on severance and retirement packages for 3,300 members of the IG Metal, the German metalworkers union.

Opel sits at the heart of GM Europe and the restructuring is necessary to end a string of losses that reaches all the way back to the late 1990s, GM officials said. GM Europe is expected to lose money again this year, but could finally post a profit in 2015.

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Representatives of Opel and IG Metall have negotiated an agreement for the approximately 3,300 employees at a plant in Bochum, Germany, which is due to shutdown permanently by the end of the year. (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.

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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…)