Five reasons why GM would be better off without Opel

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Filed under: Europe, Hirings/Firings/Layoffs, Cadillac, Chevrolet, GM, Opel, Vauxhall

Sale Denials Aside, GM's Future Looks Brighter With One Less European Partner

If GM can find a way to kick its German unit to the curb, it will do so in a heartbeat.

Even though the recent rumors of Opel being sold by General Motors to Fiat were roundly denied, there is still a lot of merit in the idea of an Opel-less GM. And you can be sure that if the company can find a way to kick its German unit to the curb, it will do so in a heartbeat. Here's five reasons why GM should be looking for a way out:

First: Opel is a money loser. The European economy is not only in shambles, but is one of the most competitive car markets on the planet. There is excess capacity, heavy discounting and no one wants to be the first to blink by shutting down factories thereby losing market share and more importantly increasing unemployment in their home country. In this environment, Opel is sure to remain a money loser for the foreseeable future and will soak up profits generated by GM North America just to stay afloat.

Matt DeLorenzo is the former editor-in-chief of Road & Track and has covered the auto industry for 35 years, including stints at Automotive News and AutoWeek. He has authored books including VW's New Beetle, Chrysler's Modern Concept Cars, and Corvette Dynasty.

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Five reasons why GM would be better off without Opel originally appeared on Autoblog on Thu, 11 Oct 2012 18:29:00 EST. Please see our terms for use of feeds.



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