GM and Opel’s Strange Love – Feature

Or, how the General learned to stop worrying and love its German brand. Early last year, on the verge of bankruptcy, GM was so cash strapped that it was looking to dispose of its European subsidiary Opel, a brand it has owned for 80 years and which played an important engineering role. GM managed to save the brand, but the dust has only just settled enough to see Opel’s path through the desperate hours and what its future will hold. But let’s back up a bit: As the full magnitude of GM’s vulnerability became clear this past spring, Magna, an Austro-Canadian supplier and auto assembler expressed interest in buying

Opel. One of the largest automotive suppliers in the world, Magna teamed up with Sberbank, a Russian bank, and presented an ambitious plan to use Opel’s production capacity. Ironic, considering how Magna’s subsidiary Magna Steyr, which builds cars for various automakers, has failed to keep its plant in Graz, Austria, even close to full capacity. Keep Reading: GM and Opel’s Strange Love – Feature Related posts: GM Recommends Magna/Sberbank Bid for Opel Not For Sale: GM to Keep Opel/Vauxhall – Car News Opel Sale Stoking Serious Anger, Could Cause World War III (Not Really, But Close)

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GM and Opel’s Strange Love – Feature