[JamesMcQuaid]

Interesting article in the Wall Street Journal (subscription required):

http://online.wsj.com/articles/gms-german-car-maker-opel-hunkers-down-in-russia-1410854857

GM's European Car Maker Opel Hunkers Down in Russia

Opel is cutting production at the company's plant in St. Petersburg to just one shift. The Opel Astra and Chevrolet Cruze are produced at the plant. Opel provided no details on job cuts in Russia, but said it is offering voluntary severance packages to redundant workers at the St. Petersburg factory.

"Last year Russia was our third-largest market after the U.K. and Germany—now this market is embroiled in serious turbulence," said Karl-Thomas Neumann, Opel chief executive, in a statement.

…

Now, Russia's car market is in free fall, and GM's turnaround in Europe appears threatened. The Russian car market has fallen 12% since the beginning of the year. Russian new car sales plunged 25% in August alone. In the first six months of 2014, losses before interest and taxes at GM's European operations widened to $589 million from $266 million the year before.

…

In addition to the St. Petersburg operations, Opel, Chevrolet and Cadillac models are produced in partnership at the Russian plants of Avtotor auto maker in Kaliningrad and the GAZ plant in Nizhny Novgorod. The GM-AVTOVAZ joint venture produces Chevrolets in Togliatti.

If G.M. were making smart business decisions they would shutter Opel, and leave the Russian market completely. As it turns out, G.M. is not making smart business decisions.

Irrespective of bad business, as with Exxon, G.M. should not be propping up the economy of America’s enemy. Let Russians drive what they so richly deserve:

 

[Neromanceres]

Opel is a brand with a rich and deep history in Europe. Especially in Germany.

Opel is also still well regarded through much of Europe. I think GM's issues in Russia have more to do with Russia than simple business sense. Since the pull out of Chevrolet in Western Europe Opel's sales have been increasing and market share has been stable (slightly increasing). Opel did take a big hit during the 2008 Bankruptcy of GM and when all the rumors circulated that GM was looking to sell Opel and pull out of Germany. Opel is the only GM brand that sells in decent volume in mainland Europe.

GM’s operations in Russia are comparatively small and primarily serve the Russian and Eastern European market.

If you want to see an Opel in North America, just look at most of Buick. As half of the Buicks sold here are rebadged from Opel's.

 

[Even-Steven]

Interesting article in the Wall Street Journal (subscription required):

....Irrespective of bad business, as with Exxon, G.M. should not be propping up the economy of America’s enemy. Let Russians drive what they so richly deserve:

Now that is funny...GM, a business... propping up economy of America's enemy? Wouldn't it be the same as Apple in China? Or many other US companies that has huge manufacturing business in China? A business only cares about one thing, profit!

 

[Lendo]

More Anti-Russian propaganda. Looks like we're going to war soon.

 

[Norton]

I can understanding not liking Russia.
But who cares on this forum?

 

[Mister Dave]

If it had tennis shoes in the back it would be a sport Trabant.

 

[JamesMcQuaid]

More Anti-Russian propaganda. Looks like we're going to war soon.

There's no propaganda here, just a sentence of IMHO. 95% of the post involves Opel operating at a loss.

Perhaps shareholders ought to ask why G.M. is willing to flush billions of dollars down the toilet for a "niche market", but is unwilling to advertise the most technologically advanced consumer car in the world, the Chevrolet Volt.

The answer may be cowardice in facing down politically motivated smear attacks, coupled with a non existent institutional memory (one that doesn't remember the complete collapse of demand for trucks and SUVs during the last oil shock).

If it had tennis shoes in the back it would be a sport Trabant.

I'm glad you enjoyed the Trabant photo humor For those of you who don't know, the Trabant was possibly the worst car ever to be mass produced.

 

[stuart22]

I'm glad you enjoyed the Trabant photo humor For those of you who don't know, the Trabant was possibly the worst car ever to be mass produced.

Yes, but that's not a Trabant. It's got some strange multi-syllable moniker like Zaphrozhets or whatever. Looking at the picture, it bears a bit of resemblance to both the original Corvair and Falcons.

 

[JamesMcQuaid]

Quite right Stuart. That's a Zaporozhets model 968M:

The 968M is the most contemporary Zaporozhets model and also spent the most time in production, spanning a career from 1979 to 1 June 1994. Some of its special variants include the ZAZ-968MB2, for drivers who have only one foot, the ZAZ-968MB for drivers who have no feet.

http://en.wikipedia.org/wiki/Zaporozhets#ZAZ-968M

 

[El Dobro]

Quite right Stuart. That's a Zaporozhets model 968M:



http://en.wikipedia.org/wiki/Zaporozhets#ZAZ-968M

There was also the ZAZ-968MBC for drivers who have their head up their ass.

 

[Mister Dave]

Quite right Stuart. That's a Zaporozhets model 968M:

It doesn't matter, it was still fun. I got that joke from a Swiss guy visiting the states. Sport Zaporozhets then.....