Analysts believe that GM will give up on Opel for good after abruptly firing Karl-Friedrich Stracke as chief executive of Opel last week.
Although on the surface things seemed to be good between GM and Opel, it seems that this was only a leg-pull. Some say that GM plans to kill off the brand, while others argue that one person’s departure changes little. No official declarations were given by the two companies regarding Stracke’s removal.
“Opel’s problems won’t be solved by managing it on the basis of quarterly results. Either the owner adopts a long term strategy and sticks to that plan or it looks pretty damn bleak for the brand in the future,” said Andreas Halin, Managing Partner of GlobalMind Executive Search Consultants in Frankfurt and an expert on corporate management.
On Saturday, July 14th, a spokesman for Opel declared that Stracke’s removal won’t affect the business plan or the plan of reaching a deal with labor unions before November regarding wage concessions in Germany. Experts believe that the only way to escape death is by earning a profit. But this idea seems quite unlikely after the damage was already done and the consumer confidence was lost.