Peugeopel

That rolls right off your tongue, doesn’t it?

Opel

GM gets rescued by the American government (government is a code word for taxpayer, by the way), Opel gets rescued by the German government and Peugeot gets rescued by the French government. Is there a pattern developing here or something? Now GM is going to rescue itself out of Europe and dump its Opel on Peugeot, making it a Peugeopel. But who the hell would want to rescue one of those?

General Motors is in advanced talks to sell its European Opel subsidiary to France’s PSA Peugeot Citroen, Handelsblatt confirmed after Reuters broke the story. A Peugeot spokesperson told Handelsblatt that the two are in discussions “over the purchase of Opel.” A deal “could be announced within days,” sources told Reuters.

Seit Jahren versucht General Motors vergeblich, seine Marke Opel zu sanieren. Nun steht offenbar ein Verkauf an den französischen Konkurrenten Peugeot an.

GM as in Gottcha Money?

Clearly upset about German Opel jobs staying here in Germany now after all, under such intolerable conditions, I mean (Opel will now remain with that yucky General Motors mother of theirs), a German government spokesman has announced that Berlin regretted GM’s decision to keep Opel and has demanded that the US-American company repay the 1.5 billion euro bridge financing package that German banks and re-election campaign strategists put together in order to convince GM to sell Opel down the river to Russian-backed Magna instead.

The Empire Strikes Back!

I don’t wirklich (really) understand this huffy German reaction, to tell you the truth. Unless of course maybe you consider that Germans are notorious anti-militarists (see Afghanistan, for instance) and hate the thought of working for any kind of general, whatever his or her name may be. This is just pure speculation on my part, however.

“Merkel had personally been involved in talks, offering substantial German government financial aid in return for assurances that jobs in Germany would be protected.”

So this is what you wanted?

Europe this, Europe that, but when it comes to jobs and number one… The main thing is that of the 10,500 people who are about to get fired at Opel 1) they won’t be getting fired by that awful American GM company (it will be Magna and Russia and Co. instead), and 2) most of those getting fired will be in Belgium and England.

The money that came in from the cold.

Oh yeah, and now it comes out that tons of German government support money involved in “the deal” will be flowing off to Russia with love. The technology too, of course, but that’s another story.

“Dass etliche Jobs wegfallen war schon vorher klar, dass es so viele sein werden allerdings nicht.”

Mud is thicker than blood

“Clearly, for the Obama administration, pushing the reset button on Russia did not include dumping a major GM asset to suit a German grand coalition notion for pocketing election campaign fillips for ‘saving’ Opel from GM with investment money from ‘strategic partners’ Moscow.

As scrupulously as the administration in Washington has said nothing about it, an American official, who asked that his name not be used, told me, ‘I think in general we’ve come to the point where the Germans feel they can take the United States for granted and do.’”

“Priorities are as clear as mud in Germany.”

The six months aren’t even up yet

The six month honeymoon between Germany and President Obama, I mean. Well at least that’s how much time I gave them.

Can we just be friends?

There’s already a wide spectrum of wonderfully hurt feelings out there everywhere these days. Chancellor Merkel’s pampered days of back-rubs, barbecues and regularly held video conferences seem to have been replaced by what many see here as intentional slights coming from Washington. These seem to have begun sometime in, let me see, well, in January.

And then this Opel number yesterday. Sure it’s evil GM all over again, but they are not alone this time. At an all-night “Opel summit” rescue session held especially in the Chancellery (this needless to say big medicine for Merkel and Co. in an election year) only a few low-level reps from Treasury even bothered to show up. And the American government has a lot to say about the matter at the moment, as you well know. The “summit” was a mega flop, of course, and the Germans are clearly outraged at not having their concerns taken seriously, yet again.

Stay tuned and let’s see what doesn’t get taken seriously next. I’ll still give the honeymoon another month or two, though. I’m just that kind of an optimistic guy.

„Some in Berlin have suggested that Obama is still punishing Merkel for not allowing him to speak at the Brandenburg Gate when he passed through Berlin last summer in the midst of his rousing campaign for the presidency.“

Obama und co. werden es richten!

Oder (won’t they? fix this mess?)? After doing something the Germans call Shakehands with top GM executives in US-Amerika, and then getting a green light from them (GM is interested in keeping a minority stake in Opel), German Economy Minister (Mininster for the Economy?) Karl-Theodor zu Guttenberg now sees hope for the ailing German-American, American-German car maker after all.

 

 Let's make a deal.

 

Although the German government was completely unconvinced by the rescue plan Opel submitted to them earlier this month, rightly arguing that it left too many questions unanswered, Guttenberg figures he can now convince our smart guys in Washington with the same plan, easy. And he’s probably right, too. These guys will buy anything.

 

The Germans are reluctant to throw tons of money at Opel unless it stands a good chance of surviving the current crisis, you see, AND unless they can avoid seeing any German state aid being funneled across the Atlantic to prop up that evil Mother of All Car Companies, GM. They aren’t doof (stupid). They want it the other way around. GM gets the money from the US government and then indirectly subsidizes Opel by taking a minority stake as private investor.

 

Like I said, Herr zu Guttenberg is optimistic and I don’t blame him one bit for being so. This plan sounds bullet-proof to me. This is true German economics in action. He’s the Economy Minister, remember? Minister for the Economy, I mean.

„Aufschluss über die Haltung der US-Regierung erwartete sich der Bundeswirtschaftsminister aus den geplanten Gesprächen mit dem US-amerikanischen Finanzminister Timothy Geithner. Doch der hat in der Krise mit den Schwierigkeiten der US-Finanzfirmen wie dem Versicherer AIG noch ganz andere Probleme als Opel und General Motors auf dem Tisch.“