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| Europe |
| While Opel's in limbo, GM's laughing |
| 2009-08-31 |
| To the outsider, the attempted Opel sale looks like chaos. There are no fewer than three bidders for General Motors' European division. Opel has plants in seven European countries, each of which wants a say in Opel's future; European unity does not exist on this file. Opel is becoming an election issue in Germany and is raising anxiety levels in recession-stricken Britain, where the cars are produced under the Vauxhall brand. The Russians want a piece of the Opel action. The company is running out of cash and could go bankrupt. In short, it's a mess. This in spite of more than three months of effort to get the rusty brute sold, shored up and shiny again. But from GM's point of view, Opel's limbo status is a thing of beauty. GM's decision not to make a decision on Opel's future is, of course, a decision in itself. As the clock ticks, the bidders and the governments keen to spare Opel from the wrecker's yard are becoming more desperate even as GM itself, out of bankruptcy since mid-July, becomes less desperate. The longer the Opel saga plays out, the better the outcome for GM. That, at least, is GM's gamble. So far the strategy seems to be working – a remarkable achievement for a company that could do nothing right for so long. If it all falls apart, Opel's bankruptcy and court-ordered sale to the highest bidder, in whole or in parts, is not out of the question. In a sense, GM has little to lose. If Opel isn't fixed in a way that would eventually return it to GM's control, General Motors might be just as happy to see it implode. |
| Posted by:Pappy |