Opel's dream is just a dream

Opel has a dream. A dream to expand the brand to new markets. But just how realistic is this dream? Stern gives us some answers:

Now Opel wants to expand to China from 2011, and then to Israel, South Africa, Australia, Chile, Argentina and the Middle East.

So Opel is relying on new markets to increase the sales. Markets like Russia and China. But on these markets GM already has strong brands:

For years, GM has stopped Opel from investing outside Europe and instead made the Chevrolet and Buick brands strong in China, Russia or Brazil.

So the big question is; Why would GM now let Opel invest in these new markets at the expense of the other GM brands?

"If we go to Asia and especially China, it will happen at the expense of Chevrolet. So just how much freedom to act will GM give us?" asks a concerned management source.

And so the dream was just a dream....

Exit Opel, enter Chevrolet?

Last week it became known that GM is replacing the Daewoo brand with Chevrolet in Asia. A couple of years ago GM did the same with Daewoo in Europe. Soon Daewoo will be history as a brand. The brand that replaces Daewoo, Chevrolet, is GM biggest brand by far, with 4,5 million cars sold in 2010. So how much more bad news from Europe and Opel is GM willing to take before they also replace the Opel name with Chevrolet? Remember that with the Opel Ampera GM will introduce a Chevy in Opel's line up. And this car is more or less the future of GM/Opel.

One thing is for sure, Opel as a brand name is tainted. What does Opel stand for anyway? Bad design? Bad quality? Rust? Old man's car? Take your pick. What is clear is that there aren't much positive vibes connected to the Opel name any more

At Opel the fear of doomsday is back

Opel is still under pressure:

Parent company General Motors is back in the hands of private investors, and that's a promise of nothing good for Opel, according to the Financial Times Germany. Now Opel must make a profit or perish in the attempt.

GM increases the pressure on Opel

How long will GM sit and watch Opel burn through the general's money?

The losses at Opel leaves the American parent company GM with resentment. The chief strategist said in an interview that the European subsidiary must soon show profits and present ideas on how this goal is achieved.

A German analysis: How long will GM keep Opel?

Here's an interesting German analysis of the situation at GM and Opel.

In one of the brightest moments in the history of General Motors , it is pitch-dark at Opel.

The fear is back in Rüsselsheim. Opel barely survived the severe economic crisis. The threat of insolvency, the tough negotiations for a new owner, the haggling over government aid has damaged the image of GM's heavy. Opel's loss swells to 1.4 billion euros in 2010, the market share in Germany decreased from 8.5 to 7.5 percent. In 1995 Opel's market share was twice as big.

Desperate GM hires Axis to turn Opel around

Apparently GM does not like watching money pour out of Opel as sales decline. Now GM has hired Axis to turn the money-losing company around:

General Motors Co. hired consulting firm Alix Partners to speed up the turnaround of its troubled European Opel and Vauxhall brands, according to a person familiar with the matter.

GM Europe (i.e. Opel) is GM's only money losing region:

GM Europe posted a $559 million loss in last year's third quarter and $1.2 billion loss in the January-to-September period, making it the firm's only money-losing region.

Opel, can you hear the bells chiming?

Opel's blood red financial statments

Opel is a money losing company. No doubt about it. The car manufacturer hasn't made money in over eight years!

Opel macht seit 2003 nur noch Verlust (Opel has from 2003 only lost money.)

But I am afraid that loss was a well know reality long before 2003. Here's the number from the nineties:
1993: -571 million Deutsche Mark
1997: -228 million Deutsche Mark
2000: -835 million Deutsche Mark

Opel is Germany’s top discounter as sales fall

From Businessweek:

General Motors Co.’s money-losing Opel brand overtook Fiat SpA with the steepest discounts in Germany last month as the unit seeks to halt a drop in sales.

Big discounts = no margin

“The Opel brand, which was already weakened by quality issues, has suffered considerable damage in the year-and-a-half- long aid pursuit,” said Stefan Bratzel, director of the Center of Automotive Research at the University of Applied Sciences in Bergisch Gladbach, Germany.

Bad quality = dissatisfied owners

“The only way for Opel/Vauxhall to sell anything is to slash prices,” Simon Empson, managing director of U.K. discount car website Broadspeed.com, said in a telephone interview, adding that Vauxhall is offering discounts of more than 25 percent, including on the new Astra. “They’re not selling. There’s no interest.”

Opel badge = no interest

Opel heads for loss of 1.4 billion euros in 2010!

From france24.com:

"In total (for 2010) we are looking at a loss of about 2.0 billion dollars or 1.4 billion euros"

According to Opel head Nick Reilly, the Opel is stearing into a loss of 1.4 billion euros in 2010. This is a huge amount!

Opel, which operates under the Vauxhall brand in Britain, has been in difficulties for years and its market share has fallen.

When you want to be a volume producer, but your cars just don't measure up and thus you face diminishing sales, your margins disappear and you are deep into the red!

Opel prepares for sales drop

Not even the new GM can save Opel, as sales are expected to drop:

Although Opel was expected to perform better now under the guidance of the "new" General Motors, the German brand predicts a drop of 9 percent this year