Opel could be out of business within a matter of weeks. Automotive News Europe says a source within the Opel structures has confirmed that unless the company receives a cash injection to the tune of €3.3 billion (about R43 billion) it will go under. These news follow hard on the heels of word that SAAB is facing the bankruptcy bullet.
Already Opel parent General Motors says it will cut 47 000 jobs worldwide this year, 26 000 of which will be outside the United States. Automotive analyst Ferdinand Dudenhöffer from the University of Duisburg in Germany says Opel should be cut loose from GM if it means to weather the storm.
“The best plan for GM and Opel would be to make a separate company and call it Opel SE,” he said. “The idea that a company that makes 1.6 million cars is not sustainable is nonsense."
Two weeks ago it was announced that GM would close its high-performance centres which produce cars like the Cadillac CTS-V. This is to allow it to concentrate on making cars that are good for the environment. At the time I lamented the possible loss of Opel Performance Centre where all the OPCs come from. Now it looks set to be a reality.
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