GM Vice Chairman Steve Girsky said that measures need to be taken to address large overcapacity in the European automobile industry. While the executive didn’t discuss plans for possible plant closures, he did say that the turnaround strategy for The General’s loss-making Opel and Vauxhall brands in Europe will be based on conservative estimates:
“We need to stop targeting overoptimistic goals and plan for unreachable market shares,” Girsky is cited as saying by newspapper Die Zeit last week.
The numbers of the turnaround strategy are only a part of the battle while the unit’s corporate culture is another. “If you’re posting losses for years that are always being compensated by the parent firm, then you get used to it and believe at some point that it is normal to lose money,” Girsky was quoted as saying.
Mr. Girsky’s observations about corporate culture seem to be spot on, given that the European arm hasn’t posted a profit in years despite making some of the best vehicles on the road. Even so, we wonder how the Vice Chairman would address the claim that Opel’s troubles are simply of the accounting nature, where the unit gets charged for the development of certain technologies, architectures, and models (Opel Insignia and Astra) — but doesn’t see the profits when its models wear a different badge (Buick Regal, Verano/Excelle).
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There you have it! I think it's a good sign that someone is saying something about it. It's also sad at the same time :(
When I said sad I mean that the Culture has diminished to what it is today not that someone is talking about it.
Yea, when youve been losing money for years and years you kind of get used to it, because there not immediate consequences like there would be if youre an independent company. But I dont think that will limit the employees potential or efforts, just keep them from making drastic changes like what is likely being done at Fiat and PSA.
Its good to someone in a senior position is noticing it and taking efforts to change it.
I have several problems with GM Europe. for starters I do not believe that Vauxhall and Opel need to exist. Vauxhall needs to go. But of course the Brits would raise a ruckus over that bit of change, but I say they would get used to it. The majority of Vauxhalls they drive are built outside of Britain anyway. If the Koreans could sit and watch the Daewoo name disappear, and Americans could sit and watch Saturn, Pontiac, Oldsmobile, Hummer, (and a bit further afield), Mercury and Dodge Trucks disappear, then they will get used to it. But what I also think needs to happen is that Opel (or Vauxhall for that matter if it is kept...which of course it will be) need to cut their number of trim levels. I went to Vauxhall.co.uk and had a look at what was being offered for the Astra. There were TEN trim levels. And within those trim levels there were a combined SIXTY EIGHT different engine/transmission variations. They need to simplify that. Back in the heyday of Vaixhall, the 1980s, the SRi line was the performance trim. You got either a 2.0 8 valve or a 2.0 16 valve engine. Period. Full stop. Now you get NINETEEN engine/transmission choices, if you include the SRi VX Line in the count. What for?!? In most cases there are more diesel options than petrol. That's fine...but when you are offering 2 1.3L, 4 1.7L, and 2 2.0L diesels, can somebody tell me what's the point? Please? They need to just stop. VW may be able to get away with all this, but right now, not Opel. They need to consolidate their models.
Completely agree with the bloated trim levels, but I dont think you understand the relationship between Opel and Vauxhall, theres a great post in the forums in the Opel/Vauxhall section that explains their relationship, read it.
If you do and are nevertheless advocating removing Vauxhall and replacing it with Opel, then never mind.
I'm advocating it, but I'm admitting that it will never happen. But we must admit, it SHOULD happen. Vauxhall is a waste of time...I mean...just the name alone irritates my mouth and my ears! Most Americans probably have never seen a Vauxhall, but I assure you that in many places in the world they could never even think of selling a car there with a name like that. In Jamaica, for example, the Vauxhall name was last used in the 70s when all Vauxhalls had names beginning with Vs (Viva, Victor, Viscount, and so on). Most people have bad memories of those vehicles (poor reliability, ugly styling, and nasty names) and wouldn't touch them. Opel itself was sold not too long ago but the Jamaican public soon saw them for what they were. Poor attempts to convince the public that "made in Germany" was the same as "made with quality". In fact, In my opinion, "made in [fill in European country name here]" is synonymous with "damn rubbish". And you got that right, I'm over the moon that the Regal is now built in Canada, away from shoddy European hands. I have little doubt that the same issue also plagues GM Europe products around the world.