Seven reasons why GM wants to keep Opel


1. A truly global company needs direct control of its operations in Europe, one of the world's three largest auto markets along with the United States and China.

2. Opel's technical center in Ruesselsheim, Germany, is the engineering axis for the Delta compact platform--the basis for such upcoming cars as the Chevrolet Cruze and Orlando--and the Epsilon mid-sized platform, the underpinning for the new Buick LaCrosse sedan and others.


3. The worst is over for Opel. The new Insignia mid-sized car is a success. The compact Astra, which debuts at the Frankfurt auto show in September, looks great and promises a lot of technology for the money.


4. GM's European dealer and distribution strategy needs complementary positioning of the Chevrolet and Opel brands. It doesn't want to turn them into direct competitors.


5. GM wants to keep control of Opel in Russia, a market with huge long-term potential.


6. Intellectual property for all GM vehicles produced worldwide would remain under the company's strict jurisdiction.


7. Opel would have more freedom to decide how and where to make cost cuts. If another group gets Opel--with support from German loan guarantees--the restructuring options will be limited by union and political pressure


Source: autoweek.com