GM Spins off Opel - WTF???

[Taverner]

http://cnnwire.blogs.cnn.com/2009/02/27/gm-spinning-of-opel/

This is the only segment of GM that's making any money! And they're spinning it off?

What, do they have like a massive case of STUPID over there?

[redqueen]

1. Maybe they're spinning it off

to protect those profits from being impacted by the losses from their other lines?

Just a guess, didn't read the article.

[Taverner]

2. Could be - but their stated reason was to make quick cash

Which may help in the short run, but down the road its a mistake

[no name no slogan]

17. At GM, there is no more "down the road"

There's barely even a next quarter at this point. They're desperate, and they're raising $$$ any way they can.

[flvegan]

3. It's to get euros. I don't think anything is going to change.

I think they share too much with Vauxhall to change a lot.

[MorningGlow]

4. "OLIVER!!!!!"

:rofl:

[flvegan]

5. Always my first thought

whenever I hear the word "Opel".

[MorningGlow]

7. My 5 YO became completely enchanted with Hammond's love affair with that car

For a while after the Africa show aired he used to run around the house chanting in a sing-songy voice, "O-li-ver the O-pel, O-li-ver the O-pel...!"

It was cute. But I'm glad he eventually stopped. :D Still, I'm on the lookout for a Matchbox Opel to add to his collection of a zillion-and-one cars. Good freakin' luck around here, though, right?

[flvegan]

9. I seriously doubt anyone made a scale 1963 Opel Kadett toy.

I like that Hammond kept the car. As I understand, Oliver lives in the garage and Hammond's ride of the day stays out in the weather.

[MorningGlow]

12. Hee hee wanna bet?

Still, I don't think they're a dime a dozen at the local Target! :D

[flvegan]

15. OMG. Oliver!!

Must have!

[flvegan]

16. There's a green 1962 on ebay

$29. So yeah, definitely not a cheap Matchbox.

[MorningGlow]

18. You know what's sick?

I'd buy it. I would. Might not give it to my kid to play with, though...!

[kwassa]

19. I learned to drive on a 1965 Opel Kadett. It took a lot of abuse.

I only rolled it once.

[kentauros]

11. As funny as that reference is, my first thought is the

bright-green 1970 Opel GT my next-oldest brother owned. He also got some minor accidents because the behemouth-driving idjits said they "couldn't see him". :eyes:


Here's the wiki image:

[flvegan]

13. Those were good looking cars.

Not many of them this side of the pond, I don't think.

[MorningGlow]

14. Then here's a toy for you too!

Okay, I've REALLY got to get back to work. Darn you, addictive DU!!

[Auggie]

20. I had one -- they were very fun to drive.

A little underpowered but fairly reliable.

[Taverner]

6. Agreed, its a smart move for Opel

But wouldn't this cut off cash to GM HQ?

[flvegan]

8. GM is keeping a stake in Opel, so they'll get income.

Diabolically speaking, putting Opel's positive liability/asset sheet off of GM's makes GM's bottom line look worse and they may get more money out of the US because of it.

[Swede]

10. Citibank is selling it's profitable subsidiaries also.

It's to raise cash,I think.

[Taverner]

21. But won't that hurt them later?

This all seems really short sighted - just like layoffs

They help give you a quick stock boost so the X-level can sell a bunch and make some cash, but in the next year, they spend MORE trying to bring back the talent they laid off.

[Swede]

23. There may be no later for them,that's how bad it is.

N0 GM,no Citibank. Or maybe owned by the USA.

[blue_onyx]

22. Considering Opel is basically Saturn, it's not surprising

Whether or not it's a good move, I have no idea. I think pretty much everything GM owns is fair game except Chevy.