Chevy Volt undercuts Opel Ampera on price

I have reported earlier that GM is losing it's patient with Opel and I asked the question how long GM will keep Opel and maybe one option is to replace Opel with Chevrolet. Today it became known that GM will sell the Chevrolet Volt 1000 euro cheaper in Europe than the price set on the Opel Ampera. If GM really wants Opel to succeed, then the general wouldn't undercut the price on the Ampera, or what?

Here's what the Independent writes:

The Chevrolet Volt will go on sale in Europe at a price cheaper than that of its rebadged cousin the Opel Ampera, General Motors has announced.

AllCarsElectric's Antony Ingram said that the most obvious difference is in the styling, with the Volt clearly a Chevrolet but the Ampera looking like no other current Opel and featuring a far more distinctive front.

Apart from some further interior cosmetic alterations, the rest of the car is essentially the same, leading Motorward to comment that it's getting hard to understand Chevrolet's pricing policy for the Volt.

Same old shit, different wrapping and different price tags.

The Wall Street Journal: Opel is one of the worst players in Europe

In a recent news analysis, The Wall Street Journal calls Opel one of the worst player in Europe:

"This is one of the worst players in Europe, which is already the worst car market in the world."

And the article continues:

GM Europe President Nick Reilly faces high costs in trying to revive Opel.

The state of Opel according to Morgan Stanley analyst Adam Jonas:

"Opel is worse than you think it is'' 

And as previously reported Europe is GM's only money-losing region:

GM Europe incurred a loss of $1.8 billion in 2010, GM's only region to be unprofitable as the auto maker last week reported its largest annual profit in more than a decade.

 And Opel will remain a money burner:

Mr. Jonas estimates Opel will remain a drain on its parent even when profitable because of a large cash requirement and high operating costs. Even if Opel were to report a slim profit, it would probably continue to burn cash, he said. 

The Opel Corsa flopped in Germany

The Opel Corsa sales in Germany was shattered in 2010 compared to 2009:

2009: 381,687 units
2010: 269,061 units

That's a decrease of 30 per cent!

Opel is a head ache for GM

2011 turned out to be a good year for GM, when you disregard their European subsidiary Adam Opel AG. Here's a few words from The Detroit News:

GM's gains in emerging markets, however, have been dampened by its troubles in Europe, where its losses deepened last year.

"Their biggest problem child is undoubtedly Europe," said Mike Robinet, an analyst with IHS Automotive in Northville.

Opel expects to lose another 500 millioner euro in 2011

GM's subsidiary, Adam Opel AG, expects to live up to it's money-losing reputation also in 2011. According to news reports, Opel's CEO Nick Reilly, is aiming at a loss of 500 million euro for 2011.

Now that GM once again is owned to a large part by private investors, how long will they sit by and watch their money wash away?

The Opel Corsa has a problem with the brakes

According to Autobild, the Opel Corsa has a problem with the brakes:

The Opel Corsa D model years 2007 to 2009, has a problem that could lead to the brakes being engaged permanently and the brake rotors overheat. The cause is a plastic bearing in the pedal rack that deforms when the foot well is heated by the car's heating and ventilation system, and this prevents the brake pedal from returning to the starting position. The fault is not safety related, claims Opel spokesman Manfred Daun.

If my brakes overheat, I would call it a safety problem!

Dump Opel and be rich

The Truth About Cars writes that without Opel, GM would be rich:

Opel is up to its eyeballs in losses.

[...]

With 8,000 jobs to go and to be paid off, there will be monstrous losses in 2011. Who knows what will happen in 2012.

If it wouldn’t be for Opel, GM would be in  hog heaven. Back home, GM makes money. In China, GM sells more cars than ever.  Everything divvy in South America  and the rest of the world.  [...] Buyers of stock are looking at future performance, and the cash drain of Opel will have a serious effect on the take from the IPO.

One of the suitors from last year, Thomas Stallkamp of Ripplewood Holding, had the following to say about Opel's current situation:

If you dig into the numbers, they still have a problem in Europe. They are doing worse than when we looked at them two years ago, and it’s going to take a lot of cash to fix Opel. That’s my concern on the IPO.

So GM has two alternatives: Keep pumping money into the big black Opel hole, or get rid of Opel and be rich!