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GM can't afford to let Opel go, Opel is the most modern GM division, which will ensure GM can compete with the Japanese when it comes to fuel-efficient cars of the future.
first, we have this:
Berlin meanwhile said it would press for repayment of a 1.5-billion-euro (2.2-billion-dollar) loan it had made to GM.
then we have this:
Henderson estimated restructuring costs at 4.4 billion dollars (three billion euros), "significantly lower than all bids submitted as part of the investor solicitation."
this from a company that filed for bankruptcy protection on june 1, 2009.
what is sad is that this incredibly inept company is STILL making bad decisions long after taking taxpayer money:
GM approached the German government some time ago pleading for its help to find a buyer for Opel and German taxpayer financial support for the company in the interim. The German government, represented by their Premier Angela Merkel, accomodated these wishes. It went to work, found a buyer and spent over €1 billion ($1.5 billion) to support the company to date.
What happened yesterday? GM management belatedly comes to its realization of the value of Opel and tells the German government they do not want to sell it. AND, they have the utter gall to ask the German government to invest another $3billion to support the German operation while they (GM) plan to restructure the business .... inevitably resulting in a huge job loss for Opel-Germany's 25,000 workers! All Germany and Premier Merkel are rightfully outraged!
not to mention this generates ill will with germany. when this is all over, we might actually need a friend.....
They'll do what any 21st Century American business would do: tell the Germans to shove this alleged debt, then go demand that Uncle Sugar bail them out....for the 66th time. They'll get it, of course. And then resume with business as usual.
We didn't let GM slide into the history books when we had the opportunity and SHOULD have. What makes you think they are going anywhere now?
This one is easy. The Euro has finally broken the $1.50 mark so Opel is worth a lot more these day and car sales in Europe are worth a lot to GM when carried over as dollars here. Then there is the point that Opel actually knows how to build small, very reliable and desirable, fuel efficient vehicles. Expect to see some of these re-badged as Chevys.
Yesterday night, German Chancellor Angela Merkel picked up the phone, called her colleague Barack Obama and voiced her displeasure. “Obama said he had not been involved in the surprise decision by the GM board,” Reuters reports. Isn’t Teflon wonderful? Angela told Barack that his state-owned company better pay back the balance of the bridge loan by the end of the month. She even dispatched her very own collection agent to DC.
In related news, Fritz Henderson told reporters today that GM is busy raiding all available couches, and that he is confident that GM can find the €3b needed to keep Opel alive.
This one is easy. The Euro has finally broken the $1.50 mark so Opel is worth a lot more these day and car sales in Europe are worth a lot to GM when carried over as dollars here. Then there is the point that Opel actually knows how to build small, very reliable and desirable, fuel efficient vehicles. Expect to see some of these re-badged as Chevys.
Here in Portugal there are surprisingly many Chevrolets on the roads, but as you said they are all compact cars, Opels actually, not Camaros, Corvettes etc. I have no idea why they sell Opels as Chevys here in Europe
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