Opel will not be a global brand, says General Motors

Article by Christian A., on August 26, 2010

General Motors Co. has its work cut out for it if it wants to get the support of the Germany government for Opel's restructuring. CEO Fritz Henderson went to Opel's headquarters last Monday to attempt to mend relations.

Apparently, he wasn't able to give a good answer to demands from German unions and political leaders for greater economy from Detroit's headquarters.

Henderson was only able to give vague assurances that Detroit would give its European carmaker more freedom.

Henderson didn't show much enthusiasm in marketing Opels outside Europe or of elevating the unit's status from a limited liability company to an incorporated stock company as proof that the carmaker would gain a greater measure of self-determination.

Instead, he pointed to the strategy for its Chevrolet brand in Brazil, where another GM brand is certainly not needed. At the news briefing, he referred to Opel as a regional brand, which he doesn't think will be changing anytime soon.

While he said that he's not closing his door to ideas on selling Opel elsewhere, he explained that the measure of the Opel brand's success will be Europe, "because if you don't win here all the discussion of exports will be irrelevant." To be able to ensure state aid, Berlin is further demanding that German funds are spent in Europe on Opel.

The government also wants GM to provide a water-tight legal separation between it and Opel to avoid any suspicion that German cash is being leaked to Detroit. [via autonews]

Topics: opel, gm

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries