I follow the car industry and have commented on GM, and on July 12, I said the following:
You see I have this thinking that GM management still does not get it. If you looked at the framework of the deal GM America still held a huge chunk of Opel and could buy it back. I am getting the feeling that GM feels that this is just a “road bump” and when things get better everything will be back to normal. However, I don’t think that will happen because GM is missing the point.
And what is coming out in the news today?
Der neue Plan sieht vor, dass GM für Opel und die britische Schwestermarke Vauxhall rund 3 Mrd. Euro von den Regierungen der USA, Großbritanniens, Spaniens und anderer europäischer Staaten erhält.
Translated GM is going to get money from USA, Great Britain, Spain, and other EU states. As I predicted GM thinks that the last few months were just hic-ups. And GM thought that the last few years were just hic-ups. GM does not need to change, but maybe a few tweaks.
For f***k’s sake is GM’s management this stupid? Are these a bunch of raving idiots? Yes I am using firm language, but GM has its head so far up its a** that it is not even funny. For here is what I think will happen.
GM will get monies from the other governments and they will be able to keep Opel, but what they will loose are its customers. As much as GM wants to dance around the issue Opel is German, and its clients are German. When GM gets this money from the other governments it is going to be the German plants that are closed. And it is going to be the German customers that are going to leave Opel!
So who will buy up this slack? French? Yeah right, they have Renault, and Peugeot. Italians? Yeah right they have Fiat. Spaniards? Maybe, but they have Seat and Volkswagen. Brits? Give me a break they are buying Japanese, and other Asians car makers. Russians? Not a chance because of this deal they would make depriving the Russians of an international car maker. I know from my brother that the Russian pride is coming back and something like this will not make them happy.
In other words YET AGAIN GM is out of the frying pan and into the fire. Of course GM is probably thinking, “hey we can do this, and we can make it.” Yeah Lutz, why not make so real decisions, you know decisions that would actually benefit GM. Oh yeah, wait you are too busy ramping up production of the Camero! Lutz last I looked at oil it was hovering at 74 USD per barrel. Sure it might drop again, but it will also quickly rise again. Do some history checks Lutz and see what happened to your company in the 70’s.