Speculation and Facts
It’s been a while since I wrote a post and I haven’t been able to respond to some comments in a timely way, so I must apologize. At the moment, when you turn on the television or open a newspaper, you can virtually guarantee there’s commentary about the automotive industry. In fact, there's so much speculation in the media about our industry that it overshadowed our most recent product news, namely the Opel/Vauxhall Insignia being voted Car of the Year 2009.
The announcement came the same day I went to Berlin together with Hans Demant, Managing Director of Opel and Klaus Franz, Chairman of the Opel Works Council. We went to meet German Chancellor Angela Merkel, Economics Minister Michael Glos, and Finance Minister Peer Steinbrück. There was of course media speculation about the purpose of our visit, but let me make one point very clear: we did not go to Berlin looking for handouts. This is simply about finding sources of liquidity that the markets will not provide due to the exceptional circumstances of the credit crisis.
Our discussions focused on how we can safeguard Opel’s future in case the global financial crisis were to create bigger challenges for GM and the global automotive industry and how we can work together to make sure Opel weathers the storm. Securing that future is naturally my highest priority. I’m proud of the effort our employees have put into rebuilding the Opel brand -- the Insignia winning Car of the Year is a great validation of that work. This builds on the recent Autobild quality report where we ranked as the best European brand and we can look back over recent years we can add awards such as the Golden Steering Wheel in Germany and Autobest Trophy in Eastern & Central Europe. In short, we're doing the right things with the product, but these exceptionally tough economic circumstances have challenged the very core of our business.
For me, these product headlines show we are on the right track with the Opel/Vauxhall brand. As we continue to develop new products over the next few years...and that work still is on-going...I'm hoping the third-party recognition for our design, driving dynamics and quality will show we are clearly moving in the right direction and have a bright future.
Carl-Peter
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- Posted in BusinessCarl-Peter Forster |
- Comments (3)
Comments (3)
Jean-Charles Jacquemin said:
Thanks Mr Forster,
I just commented yesterday on : http://www.gmeurope.info/social_media_newsroom/archives/576-Statement-from-Adam-Opel-GmbH-regarding-talks-with-the-German-Chancellery.html
And I reproduce my comment here :
"The news in my Belgian favorite newspaper was saying that there was some resistance (for instance from Roland Koch, Governor of Land Hesse) to give this guarantee to Opel because of the fear of financial transfers from German and more generally European public funds to GMNA.
They were also writing (Source Der Spiegel) that GMNA has a debt of several billions of dollars to Opel GmbH.
I agree that Opel produces very good automobiles that are affordable by the general public and are not exclusive to the upper class. IMHO this must indeed be preserved."
May I add that I'm glad to read in your post that you "continue to develop new products over the next few years...and that work still is on-going...".
I fear however that - through transfer mechanisms (transfer prices, inter subsidiaries borrowing, etc.) - in global companies like GM, German and more generally European public aid could serve particular interests in another part of the world instead of the common good of the tax payers.
It seems to me that only a cooperative approach of the concerned governments and common conditions (like development and production in the short term of low and zero emission vehicles) could avoid such problems.
Thanks for your attention.
HotCarNut said:
Carl-Peter:
Congratulations on winning the Car of the Year award! It is no small feat to be recognized in this manner, especially with all of the competition in Europe. It shows, yet again, that GM Europe is on top of its game and that the new EP2 platform is a game changer for GM. Hopefully the plans to bring the Insignia over to the States as the Saturn Aura will be greenlit again. It is simply an amazing vehicle and one that I personally would love to drive.
Best Regards,
Nathan
aka HotCarNut
Gereon (from Germany) said:
Dear Carl-Peter,
as I learnt today, there are encouraging news from Opel. Due to the high demand for the all-new Insignia, there reportedly will be added shifts for production of this beautiful sedan, which, to my taste, is the most stylish sedan by Opel, since the days of that great Rekord D, which I am proudly owning as a vintage car (heritage from my father, who died nearly 7 years ago).
I could read in recent days, that there are obviously plans at GMNA to sell or phase-out the Saturn-brand (as well as Hummer and Saab). What about this: GM may actually eliminate Saturn, but not without replacing the Saturn-brand by Opel. Once Saturn was supposed to be an import-fighter. How could GMNA better fight against imports, than with an own large-volume import-brand, which, BTW, has a tradition of more than 100 years (instead of 23 years of Saturn). This way GMNA could reduce its overall number of brands, but without cutting one of the strongest model-portfolios in the US, which Saturn certainly has in the meanwhile. As these models mainly would be designed and engineered over here in Rüsselsheim, the costs of operation for the Opel-brand in the USA should remain modest. I am absolutely sure, the Insignia would encounter delight in the US as well. Anyway I think, Opel would get an additional first boost there, as it would have the appeal of "something brandnew". To overcome the permanent issue of the Euro/Dollar-exchange-rate, it could be considered to build Opel's in the US, where capacities anyway abundantly should exist, due to necessary production-cuts, finally caused by the current financial crisis.