GM eases from bankruptcy does Vauxhall need a touch of magic to survive? Fleet Voice
The bookmakers believe that the latest Harry Potter and the Half Blood Prince movie will be the summer blockbuster of 2009. But what odds are they taking for a touch of magic at car-maker Vauxhall?
The Griffin badged brand is in the lap of the Gods at present, parent brand General Motors (GM) is ready to offload the company as GM itself, eases out of bankruptcy protection. The Harry Potter movie opens to the public today (Wednesday 15 July 2009) and GM’s deadline of finding a suitable buyer is also today, so a bit of magic could be the answer for the troubled giant.
GM has confirmed that is emerging from bankruptcy protection as a ‘new’ company which is leaner and fitter and ready to take on the demands of the current automotive market. The new GM is said to be made up of the car-makers best assets, however these assets are in large owned by the US Government. In-fact the US Government owns 61 per cent and the ‘new’ GM will be made up of four key brands including Cadillac, Buick, Chevrolet and GMC.
There has been job losses in the US with the amount of restructuring that GM has had to do, the new company will employ 27,000 fewer US employees and operate 13 fewer US car plants compared with last year. The corporate logo will remain intact according to GM sources, blue with white GM letters underlined.
But what will happen to British maker Vauxhall? Will it need a touch of magic to survive? Theoretically it should not, it is the second biggest seller in the UK fleet market with the likes of the Corsa, Astra and Insignia all performing well.
But as we all know the fate of Vauxhall is not in its own hands. GM has confirmed that negotiations were taking place “around the clock” so that GM Europe could be sold off, this is the GM arm that includes Opel and Vauxhall.
Interested parties include Canadian car-parts company, Magna, Beijing Automotive Industries and a Belgium based private equity firm called RHJ International.
With the clock ticking the US Government want bids from parties that are serious about taking and sustaining the GM Europe operation. Magna whom were thought to have won the rights for GM Europe, have lost ground in recent days as it seems to want some GM intellectual property rights and the rights to distribute in Russia. This means that the other two companies are becoming stronger candidates, which in turn is bad news for those workers at Vauxhall.
Vauxhall has two manufacturing plants in the UK, one at Ellesmere Port and one in Luton. With 5,500 people employed by Vauxhall the UK Government need to step up to the mark.
What is it they call it – a ‘special relationship between us and the USA? Surely if this relationship is so ‘special’ and the bond is so good then surely the British Government should be heard a bit louder. There is a need for Brown and his team to use its ‘special relationship’ to make sure that Vauxhall get the best outcome, so that jobs and the car industry in the UK is saved.
So today is a massive day for two British giants, one is the Harry Potter series and the other is Vauxhall, hopefully both will come out smelling of roses. You just never know, maybe some of the Harry Potter feel good factor will transcend across the UK and then some magic dust may be sprinkled on Westminster, Luton and Ellesmere Port and save the great British car maker that is Vauxhall.
Here’s hoping that a flick of the UK Government’s wand and a shout of ABRACADABRA will be enough to save this giant of the automotive industry.
Simon McBride
Source: GM
BRANDS STAYING
- Chevrolet
- GMC
- Cadillac
- Buick
BRANDS GOING
- Pontiac*
- Saturn#
- Saab#
- Hummer#
- Opel#
- Vauxhall#
*= to be discontinued/# = to be sold
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