Even though the product development and production aspect of GM’s partnership with PSA Peugeot-Citröen is still vague, some details have already emerged. For instance, PSA is expected to build the next-generation Opel/Vauxhall Zafira compact MPV — even though the new GM-engineered model has been regarded as the most competitive vehicle in the segment. To reassure stakeholders, shareholders, and employees all over the world, Opel has gone on record in saying that it will not attempt to cut costs by conducting layoffs at its development center in Rüsselsheim due to the alliance.
The following statement was published on behalf of Opel/Vauxhall CEO Karl-Friedrich Stracke:
“As part of the initial announcement earlier this year, GM/Opel and PSA stated their intent to cooperate in several areas including product development. Whatever the final split will be among the agreed common projects, no jobs will be lost in the engineering center in Rüsselsheim due to the alliance – in fact, the nature of the alliance is that it is a balanced one. Opel is leaving no stone unturned to enhance the efficiency and future viability in order to achieve sustainable profitability as quickly as possible in a difficult market environment.”
The GM Authority Take
Not wanting, or perhaps not being able, to cut the workforce is a respectable position, but has us questioning the alliance even more. If it’s not to cut costs or make a better product, what’s the point?
Comments
I guess we’ll just have to wait 15 years and see what happens. Remember back in the 90s they came up with this ridiculous idea to sell Buick in china.
So R&D doesn’t get cut? Afraid of German Unions? Political fallout?
Wimps
German Unions are notoriously powerful, they make the UAW look like a joke, they also command a strong political clout. Here we have the right and left, Europe is like the far left and the center left, our right wing conservatives like Rick Perry makes conservatives like Sarkozy a joke.
In hyper competitive Europe, especially Germany, where consumers are already reluctant to buy non euro cars, widely publicized news that GM is cutting jobs will hurt the already bad public perception, GM is like the evil overlord of Opel who ruined a perfectly good german product to alot of consumers and politicians like Merkel, the most powerful leader in Europe who also happens to hate GM. Sales would probably drop even more, shutting down one plant is already very difficult as it is. Not to mention that Europe will eventually recover, and then GM will be playing catch up.
So its easy to say that GM should just shut down everything and dont give a damn about the short and long term consequences. But Reality will get in the way.
That said, I think this alliance is a bad idea. Hopefully GM knows something we dont.