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.

Read | Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

GM swings the axe: 9,000 Opel jobs likely to be eliminated

Alex Nunez — Wed, 25 Nov 2009 16:25:00 EST

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

General Motors shouldn't expect to achieve David Hasselhoff-level popularity in Germany anytime soon. The Detroit News reports that since GM has elected to keep and restructure its Opel division, 9,000 jobs (or somewhere thereabouts) will likely be cut, with the majority of those losses expected in Deutschland. The jobs will be eliminated as part of a $5 billion restructuring plan, which GM hopes to fund with a lot of help from European governments, as well as "employee contributions" (read: concessions). Just don't expect Angela Merkel to break out her Visa debit card anytime soon.

Opel/Vauxhall CEO Nick Reilly wins the Unintentionally Hilarious Quote of the Day award for this line: "We have also said that GM can and will put some money in, as well." What a novel concept. Digressing for a moment: Given that GM is out shaking the coffee can looking for ways to fund the Opel restructuring, it's hard to imagine a scenario where they find a way to save Saab, too. Getting the Opel business in order hardly sounds like it's going to be a picnic, so a rescue of the ailing Swedish automaker has got to be low on the priority list right now.

[Source: The Detroit News | Image Source: Thomas Lohnes/Getty]

GM swings the axe: 9,000 Opel jobs likely to be eliminated originally appeared on Autoblog on Wed, 25 Nov 2009 16:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

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.

Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Permalink | Email this | Comments

REPORT: Ex-Opel chief Carl-Peter Forster may take over at Jaguar-Land Rover

Sam Abuelsamid — Mon, 09 Nov 2009 10:30:00 EST

Filed under: Hirings/Firings/Layoffs, Jaguar, Land Rover, Opel, Rumormill

It appears that outgoing Opel chief Carl-Peter Forster may have already lined up a new gig for himself. According to The Times of London, Forster will become an employee of Tata Motors and take the top job at Jaguar-Land Rover. If this appointment comes through, it will be something of a homecoming for Forster who was born and raised in London. Additionally, Forster also ran production at BMW when it owned the late Rover Group.

Forster left General Motors Europe after publicly disagreeing with the way the company handled the aborted sale of Opel and Vauxhall to Magna International. Forster is not the only one that was not pleased with the results - most news accounts suggest that British and German governments are increasingly unlikely to help GM with its European restructuring. Tata has not publicly commented on the Forster appointment, but it could happen as soon as this week.

[Source: Times of London]

REPORT: Ex-Opel chief Carl-Peter Forster may take over at Jaguar-Land Rover originally appeared on Autoblog on Mon, 09 Nov 2009 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Permalink | Email this | Comments

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.

Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Permalink | Email this | Comments

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.

Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

VIDEO: Another reason to watch rallying: Burcu Cetinkaya

Jonny Lieberman — Tue, 08 Sep 2009 14:58:00 EST

Filed under: Motorsports, Videos, Opel, Skoda

2008 Castrol Fiesta Sporting Trophy winner Burcu Centikaya - Click above to view video after the jump

Move over Sabine Schmitz. It's been nice, but looks like us gross internet troll types have a new hot-shoed hottie to leer and drool over. Meet Burcu Cetinkaya. She's 28-years-old and she's a rally driver. First of all, Burcu starts of by explaining that her dream car at 18 was an Opel Calibra 4x4. That's not exactly normal teenage girl thinking. Of course, Burcu admits to crashing the Calibra several times, but only because she was "trying to go so fast with it." We can respect that. And there's actually some fairly gnarly footage of her crashing a rally car in the 2008 Ypres rally in Belgium. But, Burcu explains, the tires were cold and professionally she's only crashed twice, which is quite low actually for a rally driver.

Halfway through the video, Burcu winds up in Austria where she gets to test out the new to her Skoda Fabia Super 2000. Not surprisingly, her coach (Raimund Baumschlager) feels she has the stuff to make it into WRC, explaining, "You teach a little bit, you tell her something and immediately she does the right thing. I think this is the most important thing for a rally driver." Also of note, Burcu admits to idolizing Michelle Mouton, the legendary Audi Pikes Peak driver and modern day glass ceiling smasher for female racecar drivers. And just because we're a bunch of dudes, if you think Burcu is attractive for a racer, just wait until you meet her co-driver, Cicek Guney. Full video, after the jump.

[Source: Axis of Oversteer]

Continue reading VIDEO: Another reason to watch rallying: Burcu Cetinkaya

VIDEO: Another reason to watch rallying: Burcu Cetinkaya originally appeared on Autoblog on Tue, 08 Sep 2009 14:58:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments

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.

Read | Permalink | Email this | Comments