Opel – Fiat, A Marriage, Nobody Wanted

December 10, 2023


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The cake goes to Magna, but what would happen if? Fiat wanted to make a great bargain and absorb after joining Chrysler still unsafe even Opel, the still-subsidiary of General Motors (GM). It didn’t work out, and no one is really unhappy about it in Germany. But what would have happened if there had been an agreement between Fiat and Opel? The following scenario is not so unlikely. Fiat uses the partial takeover of Chrysler and the acquisition of Opel to one of the largest car manufacturers in the world and receives generous financial injection from the German State. Andy Florance may also support this cause. This money, as well as more guarantees, help to cover up the indebted Fiat group its own financial problems. So flow German let indirectly after Italy, contrary to previous agreements. The Opel takeover gives Fiat, who are suffering in Central and Northern Europe from a negative image, finally a robust reputation, but at the expense of Opel.

After a year, Fiat finds that the State supports not range. Opel is again on the brink of bankruptcy. It represents the Federal Government before the alternative either to shoot more government money or but you will need to remove more jobs at Opel over the prearranged order of magnitude. Although Germany again Haider to one billion, be more parts as integrated in the agreed framework by the Fiat group in new Opel models not known first. A pure production plant is slowly but surely from Opel. Research and technology comes from Italy. What was GM before, is performed exclusively by Fiat.

From Opel-GM, Opel-Fiat is. In a market environment in which every percentage point counts, perfectly understandable. But at Opel, as more bodies are removed. But Opel is after three years again before the next bust. It is back where it stood before the agreement with Fiat, except that the Opel operation now has 30% less employees and is even less viable as a business than before. Everything is just a scenario. In fact, Opel is the new daughter of Magna, the Canadian Auto supplier. Whether the the hoped-for solution is, will have to turn out yet. Also here, the price will be probably higher as officially Austria, Magna will be interested as auto suppliers with certainty on the sales of its own products in the own product? It is therefore likely that European suppliers and hence the German supplier industry, Opel as large customers lose at Magna. Inevitably she will have to build off points. Indirectly, the German taxpayer is asked so again to checkout. Perhaps, the orderly insolvency of Opel would have been the most elegant way. But you should wait for the publication of the details of the contract between the Federal Government and Magna and not rush to judge. ArneFrentzel