Divorce usually makes you poorer – but not in the case of Opel, formerly the estranged partner of General Motors.
After separating from GM a year ago – and shacking up with Peugot, the French car combine – Opel began making money again.
After 20 years of losing it.
Hilariously, GM practically gave away Opel to Peugot, insisting that investors accept a loss to seal the deal. And now Opel is no longer giving away cars – “discounting” them, in car industry jargon – as it did when GM owned it.
What’s interesting about all this is Opel made all that money in 2018 selling the same cars it wasn’t selling in 2017. The only major change was the leadership (and ownership) not the lineup.
This says something about GM’s leadership that ought to be of interest to anyone who owns GM stock.
Something not good.
It’s not just this Opel business, either.
GM is in the process of destroying Cadillac; instead of “zigging,” GM’s luxury division is flat-lining. This coincided with GM’s decision to move Cadillac’s PR and marketing headquarters to New York City – a place that is to cars what Vegas is to peace and quiet. That decision has been rescinded, but the flailing continues. GM doesn’t seem to know what to do with Cadillac – because it doesn’t seem to know what Cadillac should be.
A luxury brand? A luxury-sport brand? An electric luxury-sport brand?
Buick is gasping on the floor like a just-landed flounder.
GMC takes sales away from Chevy – and Cadillac – by reselling the same vehicles, slightly disguised. GM spend lots of money marketing three badge-engineered brands.
Make that four – since everything Buick sells is also sold by Chevy and GMC, too.
Well, they try to sell them.
GM probably could, too – if GM management could figure out how.
Maybe Opel will tell them.
. . .
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