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Shock GM decision on Opel sale draws ire

Published: 04 November, 2009, 20:32
Edited: 09 November, 2009, 10:36


The GM decision to back out of the planned sale of a 55% stake in Opel has sparked an angry response in Berlin and concern in Moscow, after months of negotiations went nowhere.

 
10 COMMENTS
XTX November 04, 2009, 20:55 quote
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I purpose the idea to government of Russian Federation to completely close and freeze all investments, development programs and factories of General Motors and it`s subsidiary companies situated in Russia. Or to introduce extremely high government taxes for all General Motors products !

Koenig November 04, 2009, 23:55 quote
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This decision is unfortunate and represents more strain than solutions. Most effected by this decision are those who have a lot to loose, namely the workers at Opel. One might hope that GM reconsiders and proposes a win - win situation, which should include more investments in Russia. Best regards, Axel Mainzer Koenig

peter November 05, 2009, 04:41 quote
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The GM decision to back out of the planned sale of Opel to the Canadian-German-Russian consortium is nothing of a surprise as it has never been planned to be realised but it was only used as a bite for the US grand global agenda. Coincidently, at the same time US backed out from the Middle East Peace plan, UN crime report of Gaza War against Israelis and Palestinians, and finally Iranians realised that negotiations with US on its nuclear program are only one Way Street is wasting of time. But the rules of the game have changed forever; Anglo-Americans economically crippled, Lisbon Treaty signed, what choice do the schizophrenic GM board has? But they don’t give up without a fight, just like the good old western movie-the winner takes it all.

MCChurch November 05, 2009, 13:59 quote
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This was another attempt to steal the western technology by the Russians which, rightly so, was stopped. Russia's total dependence on the Western technologies is pathetic. So, Mr. XTX's wake up and face reality. The real loser in this is Russia, the Western countries will find a solution to keep Opel going. By the way, in the country where the 65% of territory is 'perma frost', corruption and total lack of freedom the chance to improve Russian 'infrastructure' is next to zero. Good luck.

John November 05, 2009, 16:41 quote
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This is typical way to do business in US; watch DvD "Flash Of Genius[2008]". I do not think Russia is loosing anything here. Look at the deal where GM went wild; they sold opel but Magna has to pay royalty, are you kidding me? What is it? Is it franchise? GM is the cheapest and lousiest motor company in the world. GM produce junkies for honest Americans. I never ever look at GM cars. On the surface GM cars look nice like toilet bowl but it is rotten inside. Besides, GM killed public transportations in North America. David Dunbar Buick, founder of the Buick Motor Company, was a plumber who credited 13 patents including those for a lawn sprinkler, bathtubs, and a flushing device. David has a chance to work for Henry Ford once. He has stolen idea how to developed the valve-in-head (or overhead valve) engine. Buick started the Buick Auto-Vim and Power Company. Buick’s funding ran dry. When Buick was unable to repay his debt, he sold the Buick Motor Company to James Whiting. After that David Buick tried his hand in the oil business. Later, he dabbled in real estate.On November 1, 1904, William Durant signed on as director of the Buick Motor Car. Once Durant had consolidated his control of the company, David Buick found himself without role. Buick died penniless on March 3, 1929 at Harper Hospital in Detroit. As you can see from GM history it is not an honest company and engineering is very weak. That is why General Motors Corp filed for bankruptcy. And I can tell you it will be not last time. Obama gave them $49 billion from taxpayer money to keep it alive. Reports say that the US government may own 70 per cent stake in General Motors. It is no doubt, they will eat this money and file for bankruptcy again. In this context Canada and Russia should impose high import taxes (e.g. 95% cost of the imported car) and on all operations of General Motors and its subsidiary (like Opel or Saturn) on its territory and wait. By the way, Saab Breaks-Off from General Motors too.

Bianca November 05, 2009, 16:54 quote
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@McChurch; I believe you meant to say "German technology", not "Western technology". What an irony. Germany's technological know-how enabled US to build atom bomb, develop NASA programs, and even attempted to modernize US stagnant auto-industry. Remember Chrysler-Daimler deal. GM forgets that Opel is German technology, and that Germany did not allow the nationalism in the way when GM bought Opel. What did GM do for Opel? Nothing. Did not expand its market in US, and did nothing to expand it elsewhere. Opel was still selling good on the reputation for German engineering in Europe. What does Germany get in return? Now that the economic times are hard as the Wall Street virus has spread accross globe, GM ran under the protective skirts of US government sponsored bankruptcy plan. And in the process, could not care less for the reputation of Opel, and the fate of tens of thousands of its workers. It could not care less about the determination of German government plan to pull out of the bankrupcy vortex its own name brand. But now, suddenly, the nationalistic juices are flowing, carrying the banner of the "West", to protect Opel intelectual property! If Germany wants a deal with Russia, and is satisfied that vast majority of its workers will keep the job, who is GM to "protect" Germany from itself? And if Russia is willing to take a financial risk through its state bank financing, who is GM lecturing? And if GM is so concerned about its "technology", why has GM opened car factories in Russia? Because of Russian market. But for the "West" loving GM, this is not for Germany. No, no --- poor Germany needs a shaperone in Russia. This affair has a stink about it that goes well beyond the usual car industry woes.

GrizzlyBear-r-r November 05, 2009, 16:58 quote
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MCChurch, The only "technological" secret that was not revealed by you yet is the tremendous level of "Government Motors" management's incompetency and inability to produce a decent car in the last two decades. Good European companies should be separated from GM as soon as possible if they want to survive. SAAB is on the right track and Opel should follow. Americans will benefit from this separation too, because they will have an alternative to the crappy cars produced by GM.

michael November 06, 2009, 21:57 quote
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MCChurch is a very funny guy since he is linking political issues with business, a western rhetoric of a Cold War stereotypes, and is indifferent about Goldman Sacks and JP Morgan financiers of GM whom are treating 10.000 Opel employees across Europe as 10.000 sacrificial lambs who will lose their jobs just to punish Russia?!? What a Christmas present for those poor families. Western countries have found a solution to keep Opel going, including Germany, but the above mentioned banks are doing more damage to western countries than Russia. What are you talking about Gringo?

ergatis November 07, 2009, 08:00 quote
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Government Motors? That was good! Both GrizlyBear and Bianka are right. Americans themselves are idiots and they built their "supperior" technology by paying foreign scientists with Jews' money... This trick of GM was ordered by "good" "chairman" Obama to block the Russians. But this won't avail them, they only succeded to be hated by the Germans. Every unemployed German knows who's responsble for their plight: the American government. With some luck we will have anti-American riots in Germany! SVR will not need to move a single finger... And of course finally Opel will pass to Russians. It will be a double victory of Russia and Germany will be in a track to alliance with Russia. It will be the first step to the dissolution of NAziTO.

clevelandswabbie November 08, 2009, 18:47 quote
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This latest "clown act" from GM causes concern on this side of the globe, too. I don't know exactly how this "no sale" is viewed by Canadians, since their gov't. poured money into a "new GM"; however, part of the bailout promise was that GM sell OPEL. GM can't use USA bailout money to pay back the Germans...it's against the terms of the "bailout from the USA". GM's Board makes no sense: i.e. they get the bailout on the condition they sell OPEL; they then don't sell OPEL; then cite that it's the "new Board members from the Obama administration" that changed the deal. Wait...Obama said sell OPEL...? A corporation in the USA has a "charter" granted by the state to do business "for the benefit of the state". The GM Board has forgotten that aspect of "doing business" for a long time. Look at Detroit. "Technology" aside for a minute...GM is displaying a huge lack of conscience by not making products available in a free market and trying to pin a boycott on the Obama administration as well as a low blow to Germany.

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