20,000 Camaro convertibles to roll off the production line thanks to Magna contract
General Motors has decided to go ahead with production of the Camaro convertible. They predict that around 20,000 units will be sold every year. The only problem is where to build the new drop top when production time comes around in early 2011. The answer to GM’s problem is Magna. Yes, the very same Magna that tried to buy Opel in Europe. Magna will build the Camaro convertibles at GM’s Corvette plant in Bowling Green, Kentucky. For more details, head on over to Autoblog.
(Image source: GM)
German Chancellor angry at GM’s decision to not sell Opel
German Chancellor Angela Merkel needs to settle down now. The chancellor is bitter at GM’s reversal of decision to sell Opel in Europe to Magna and Gaz. Her fear is that GM is going to cut too many jobs at Opel, as compared to Magna’s plans.
GM decided to not sell Opel because of its small car platforms and also the improving global economy. This is a smart move in my opinion; how else would GM be a global company if it sold off most of its operations in Europe?
Does Angela Merkel actually think that Opel can be more successful under the ownership of Magna and Russia’s Gaz? She should relax.
Read the full article at New Europe.
On a day when GM posted a 4% increase in sales for October, GM also announced that it is backing out of its sale of Opel. GM cited an improvement in the economy and the importance of Opel’s compact car technology as reasons for reconsidering the sale.
GM had been in discussions to sell Opel with Magna and Russia’s Gaz since May, but finally settled on keeping Opel and restructuring it. A restructuring of Opel will cost GM as much as $4.5 billion and may additionally cost thousands of jobs.
Opel is important to GM because it has excellent penetration in the European market and a lot of expertise in compact cars, both of which are important to GM as it strives to be a global company. Good choice on GM’s part…
Read the full article at The Washington Post.
