GM will invest $5.2 Billions in Opel (2013, Germany, best, buy)

[28173]

General Motors will invest $5.2 billion in its German division, Opel, over the next four years with hopes of turning around a business plagued with too many factories and uncompetitive labor costs.

The automaker’s Euroepan operations has lost about $18 billion over the last 13 years.

GM to invest $5.2B in Opel through 2016 | Detroit Free Press | freep.com

Really, if a business keeps loosing money and has "too many factories and uncompetitive labor cost" the solution is throwing more money at it?
Sounds like government approach, not business approach....when is the next bailout?

[Snowball7]

you know what "uncompetitive labor cost" translates to, right ?

- the best workers money can buy
- highest skill levels, highest morale, pride in their work
- German engineering

[iTsLiKeAnEgG]

The issue here is that Opel takes care of a very significant amount of GM's engineering, platform development and design. Without Opel, Buick would still be in the toilet. Ideally they could shutter some of the factories and keep the development areas running but closing a factory, even one that is losing money is very difficult in the EU. At this point the real value in Opel is the R&D it does for the rest of GM which is quite a bit.

[High_Plains_Retired]

I had a great aunt named Opel. Both her and GM are dead in my view.

[iTsLiKeAnEgG]

Originally Posted by High_Plains_Retired

I had a great aunt named Opel. Both her and GM are dead in my view.

*The sound of no one caring*

[High_Plains_Retired]

Originally Posted by iTsLiKeAnEgG

*The sound of no one caring*

Ha! That's about the most interesting thing I could say about GM. Yawn!

[iTsLiKeAnEgG]

Originally Posted by High_Plains_Retired

Ha! That's about the most interesting thing I could say about GM. Yawn!

LOL, well I suppose the best part about opinions is that we're allowed to have them.

[Fargobound]

GM really needs to kill Opel

[ovcatto]

Originally Posted by 28173

Sounds like government approach, not business approach....when is the next bailout?

How do you think that business get into the position to be bailed out in the first place?

[southernnaturelover]

Originally Posted by Snowball7

you know what "uncompetitive labor cost" translates to, right ?

- the best workers money can buy
- highest skill levels, highest morale, pride in their work
- German engineering

Even some of the crappiest workers think they deserve higher pay.