GM Europe
Encyclopedia
General Motors Europe AG (often abbreviated to GM Europe) was responsible for the operation of General Motors Corporation
("GM") businesses in Europe
. The subsidiary was established by GM in 1986 and operated 14 production and assembly facilities in 9 countries, and employed around 54,500 people. GM's core European brands are UK-based Vauxhall
and Germany-based Opel
, which sell much the same range of cars in different markets. It formerly owned the Swedish marque Saab
until early 2010. The U.S. brands Corvette
and Cadillac
are imported into Europe in small quantities. After Saab was sold to Spyker GM and its German subsidiary Opel decided to eliminate the former GM Europe organization in Zurich, Switzerland. Opel is now managed from its brand headquarters in Rüsselsheim, Germany. There are now independent organizations in Europe: Adam Opel AG, which includes the division Vauxhall
and Chevrolet Europe GmbH
. Chevrolet
is still managed and headquartered from Zurich, Switzerland.
, GM Europe operated 14 vehicle production and assembly facilities in 9 countries and employed around 54,500* people. Many additional directly related jobs were provided by some 8,700 independent sales and service outlets. In 2005 GM's market share in Europe was 9.4%.
The total number of European employees were 54,500 (as of May 2009).
entered the European market only three years after the company's foundation in 1908. This involved the construction of Chevrolet
cars in Denmark
in 1923 and Belgium
in 1925. This involvement was greatly expanded by the acquisitions of Vauxhall
in 1925 and Opel
in Germany
in 1929.
In 1986 GM officially inaugurated GM Europe.
The same year, GM bought Lotus
group in England and seven years later, on 27 August 1993, GM sold the company for £30 million to owners of Bugatti
. GM acquired a 50 percent stake in Saab
of Sweden
in 1989, taking full ownership in 2000. General Motors also developed a partnership with and acquired a stake in Fiat
in 2000. GM divested its minority equity interests and dissolved the partnership in 2005, following a legal fight regarding the conditions of a put option
afforded Fiat.
The deal, underwritten by the German Government, was negotiated by German Chancellor Angela Merkel
. GM was expected to keep a 35% minority stake in the new company, Opel staff 10%, with a plan which proposed to sell the majority of the business to one of two partners:
The new company would not be allowed to sell Opel cars in the US (permanently) and China (at least temporarily) markets, which are the two biggest markets in the world.
On June 1, 2009, GM filed for bankruptcy in a court in New York
. As the sale of Opel has been negotiated two days before, with the preferred bidder the Magna consortia, both companies were in effect ring-fenced from any GM asset liquidation. Magna stated that their plans for Opel included attracting GM or third-party carmakers to build their cars and electric vehicle
s in Antwerp. If Opel needed to reduce production of its own core models then any unused capacity could be used to manufacture vehicles for other carmakers. Inside sources close to Magna revealed that some of the possible third party carmakers include Ford and PSA Peugeot Citroen
. However, negotiations broke down with Magna over details, particularly the sale of intellectual property rights and distribution of all future GM products in the former Soviet Union
.
On June 11, 2009 a letter of intent
was signed by GM to sell Saab to Koenigsegg
.
GM announced that final bids were to be placed with them by July 20, which resulted in three bidders:
Towards the end of August 2009 there were doubts over whether a sale of Opel would actually go ahead, though a German government official later revealed that talks were continuing. This was followed by RHJ International raising its bid for Opel to €300m from €275m.
On 10 September 2009, GM agreed to sell a 55% stake in the German brand Opel to the Magna group with the approval of the German government. With this move, Magna Chairman Frank Stronach
aims to take Magna from its current role as a parts supplier to an expanded role as a global automaker that ranks “amongst the leaders in selling and building electric car
s.” However, on 3 November 2009 the GM board called off the Magna deal after coming to the conclusion that Opel was crucial to GM's global strategy.
With ongoing restructuring plans Opel announced the closure of its Antwerp plant in Belgium
but the deal fell through in November 2009. However, there was a string of hope for the Swedish brand if the rescue bid by Dutch sportscar maker Spyker Cars
would be accepted. Hopes for saving the Swedish marque finally reached a good point when on 26 January 2010 a deal had been agreed for Saab to be sold to Spyker Cars, forming a company now known as Swedish Automobile.
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
("GM") businesses in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. The subsidiary was established by GM in 1986 and operated 14 production and assembly facilities in 9 countries, and employed around 54,500 people. GM's core European brands are UK-based Vauxhall
Vauxhall Motors
Vauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
and Germany-based Opel
Opel
Adam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
, which sell much the same range of cars in different markets. It formerly owned the Swedish marque Saab
Saab Automobile
Saab Automobile AB, better known as Saab , is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. It is the exclusive automobile Royal Warrant holder as appointed by the King of Sweden...
until early 2010. The U.S. brands Corvette
Chevrolet Corvette
The Chevrolet Corvette is a sports car by the Chevrolet division of General Motors that has been produced in six generations. The first model, a convertible, was designed by Harley Earl and introduced at the GM Motorama in 1953 as a concept show car. Myron Scott is credited for naming the car after...
and Cadillac
Cadillac
Cadillac is an American luxury vehicle marque owned by General Motors . Cadillac vehicles are sold in over 50 countries and territories, but mostly in North America. Cadillac is currently the second oldest American automobile manufacturer behind fellow GM marque Buick and is among the oldest...
are imported into Europe in small quantities. After Saab was sold to Spyker GM and its German subsidiary Opel decided to eliminate the former GM Europe organization in Zurich, Switzerland. Opel is now managed from its brand headquarters in Rüsselsheim, Germany. There are now independent organizations in Europe: Adam Opel AG, which includes the division Vauxhall
Vauxhall Motors
Vauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
and Chevrolet Europe GmbH
Chevrolet Europe
- History :Chevrolet was established in 1911 by Louis Chevrolet and Billy Durant, the founder of General Motors. Louis Chevrolet had already built up a reputation as a mechanic and race driver, first in his native Europe and then over in the USA. He gained experience working with the largest car...
. Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
is still managed and headquartered from Zurich, Switzerland.
Overview
In EuropeEurope
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, GM Europe operated 14 vehicle production and assembly facilities in 9 countries and employed around 54,500* people. Many additional directly related jobs were provided by some 8,700 independent sales and service outlets. In 2005 GM's market share in Europe was 9.4%.
European Factories
- Germany: BochumBochumBochum is a city in North Rhine-Westphalia, western Germany. It is located in the Ruhr area and is surrounded by the cities of Essen, Gelsenkirchen, Herne, Castrop-Rauxel, Dortmund, Witten and Hattingen.-History:...
, EisenachEisenachEisenach is a city in Thuringia, Germany. It is situated between the northern foothills of the Thuringian Forest and the Hainich National Park. Its population in 2006 was 43,626.-History:...
, KaiserslauternKaiserslauternKaiserslautern is a city in southwest Germany, located in the Bundesland of Rhineland-Palatinate at the edge of the Palatinate forest . The historic centre dates to the 9th century. It is from Paris, from Frankfurt am Main, and from Luxembourg.Kaiserslautern is home to 99,469 people...
and Rüsselsheim (OpelOpelAdam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
factories), employed 25,103 workers. - Spain: ZaragozaZaragozaZaragoza , also called Saragossa in English, is the capital city of the Zaragoza Province and of the autonomous community of Aragon, Spain...
(GMGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
factory), employed 7,001 workers. - UK: Ellesmere PortEllesmere PortEllesmere Port is a large industrial town and port in the unitary authority of Cheshire West and Chester and the ceremonial county of Cheshire, England. It is situated on the south border of the Wirral Peninsula on the banks of the Manchester Ship Canal, which in turn gives access to the River...
and LutonLutonLuton is a large town and unitary authority of Bedfordshire, England, 30 miles north of London. Luton and its near neighbours, Dunstable and Houghton Regis, form the Luton/Dunstable Urban Area with a population of about 250,000....
(VauxhallVauxhall MotorsVauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
factories), employed 4,279 workers. - Sweden: TrollhattanTrollhättanTrollhättan is a city and the seat of Trollhättan Municipality, Västra Götaland County, Sweden with 44,498 inhabitants in 2005. It is located 75 km north of Sweden's second-largest city, Gothenburg....
(SaabSaab AutomobileSaab Automobile AB, better known as Saab , is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. It is the exclusive automobile Royal Warrant holder as appointed by the King of Sweden...
factory), employed 3,892 workers. - Poland: GliwiceGliwiceGliwice is a city in Upper Silesia in southern Poland, near Katowice. Gliwice is the west district of the Upper Silesian Metropolitan Union – a metropolis with a population of 2 million...
(GMGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
factory), employed 3,582 workers. - Belgium: Antwerp (GMGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
factory), employed 2,584 workers. - Russia: St. Petersburg (GMGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
factory), employed 986 workers.
The total number of European employees were 54,500 (as of May 2009).
History
General MotorsGeneral Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
entered the European market only three years after the company's foundation in 1908. This involved the construction of Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
cars in Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
in 1923 and Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
in 1925. This involvement was greatly expanded by the acquisitions of Vauxhall
Vauxhall Motors
Vauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
in 1925 and Opel
Opel
Adam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
in 1929.
In 1986 GM officially inaugurated GM Europe.
The same year, GM bought Lotus
Lotus Cars
Lotus Cars is a British manufacturer of sports and racing cars based at the former site of RAF Hethel, a World War II airfield in Norfolk. The company designs and builds race and production automobiles of light weight and fine handling characteristics...
group in England and seven years later, on 27 August 1993, GM sold the company for £30 million to owners of Bugatti
Bugatti
Automobiles E. Bugatti was a French car manufacturer founded in 1909 in Molsheim, Alsace, as a manufacturer of high-performance automobiles by Italian-born Ettore Bugatti....
. GM acquired a 50 percent stake in Saab
Saab Automobile
Saab Automobile AB, better known as Saab , is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. It is the exclusive automobile Royal Warrant holder as appointed by the King of Sweden...
of Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
in 1989, taking full ownership in 2000. General Motors also developed a partnership with and acquired a stake in Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
in 2000. GM divested its minority equity interests and dissolved the partnership in 2005, following a legal fight regarding the conditions of a put option
Put option
A put or put option is a contract between two parties to exchange an asset, the underlying, at a specified price, the strike, by a predetermined date, the expiry or maturity...
afforded Fiat.
Restructuring
Following the 2008 global financial crisis, and GM's plunge towards bankruptcy, on May 30, 2009, it was announced that a deal had been reached to transfer New Opel (Opel plus Vauxhall, minus Saab) assets to a separate company, controlled by a trustee.The deal, underwritten by the German Government, was negotiated by German Chancellor Angela Merkel
Angela Merkel
Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
. GM was expected to keep a 35% minority stake in the new company, Opel staff 10%, with a plan which proposed to sell the majority of the business to one of two partners:
- FIATFiatFIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
- A consortium majority-owned by a SberbankSberbankSberbank Rossii is the largest bank in Russia and Eastern Europe. The company's headquarters are in Moscow and its history goes back to Cancrin's financial reform of 1841...
of Russia (35%), Magna InternationalMagna InternationalMagna International Inc. , is an automotive supplier headquartered in Aurora, Ontario, Canada. It is Canada's largest automobile parts manufacturer, and one of the country's largest companies. It owns the Magna Steyr automobile production company of Austria....
of Canada (20%), and Opel employees and car dealers (10%)
The new company would not be allowed to sell Opel cars in the US (permanently) and China (at least temporarily) markets, which are the two biggest markets in the world.
On June 1, 2009, GM filed for bankruptcy in a court in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. As the sale of Opel has been negotiated two days before, with the preferred bidder the Magna consortia, both companies were in effect ring-fenced from any GM asset liquidation. Magna stated that their plans for Opel included attracting GM or third-party carmakers to build their cars and electric vehicle
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
s in Antwerp. If Opel needed to reduce production of its own core models then any unused capacity could be used to manufacture vehicles for other carmakers. Inside sources close to Magna revealed that some of the possible third party carmakers include Ford and PSA Peugeot Citroen
PSA Peugeot Citroën
PSA Peugeot Citroën is a French manufacturer of automobiles and motorcycles sold under the Peugeot and Citroën marques. Headquartered in the 16th arrondissement of Paris, PSA is the second largest automaker based in Europe and the number eight in the world.-History:In December 1974 Peugeot S.A....
. However, negotiations broke down with Magna over details, particularly the sale of intellectual property rights and distribution of all future GM products in the former Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
.
On June 11, 2009 a letter of intent
Letter of intent
A letter of intent is a document outlining an agreement between two or more parties before the agreement is finalized. The concept is similar to a heads of agreement...
was signed by GM to sell Saab to Koenigsegg
Koenigsegg
Koenigsegg Automotive AB is a Swedish manufacturer of high-performance sports cars based in Ängelholm.-Company:The company was founded in 1994 in Sweden by Christian von Koenigsegg, with the intention of producing a world-class supercar...
.
GM announced that final bids were to be placed with them by July 20, which resulted in three bidders:
- Magna, still backed by Sberbank, had made a last-minute change to its bid in order to placate concerns about its Russian partner's influence. This would result in both partners having a 27.5% share in the new company, with GM retaining 35%
- BelgianBelgiumBelgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
-based investor RHJ InternationalRHJ InternationalRHJ International is a holding company based in Belgium. The company, previously known as Ripplewood Holdings Japan, was a private equity fund run by Ripplewood Holdings prior to being listed on the Euronext. Timothy C. Collins, the founder of Ripplewood, is the company's largest shareholder and... - ChinaChinaChinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
's Beijing Automotive IndustriesBeijing Automotive Industry Holding CorporationBeijing Automotive Industry Holding Co Ltd is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers, such as Beijing Automobile Works Co Ltd, etc. Beijing Automotive Industry Holding Co Ltd 's state-run parents may include Beijing Automotive Group ,...
- disqualified over "intellectual property issues" a few days later
Towards the end of August 2009 there were doubts over whether a sale of Opel would actually go ahead, though a German government official later revealed that talks were continuing. This was followed by RHJ International raising its bid for Opel to €300m from €275m.
On 10 September 2009, GM agreed to sell a 55% stake in the German brand Opel to the Magna group with the approval of the German government. With this move, Magna Chairman Frank Stronach
Frank Stronach
Frank Stronach, CM is an Austrian-Canadian businessman. He is the founder of Magna International, an international automotive parts company based in Aurora, Ontario, Canada, and Magna Entertainment Corp., which specializes in horse-racing entertainment...
aims to take Magna from its current role as a parts supplier to an expanded role as a global automaker that ranks “amongst the leaders in selling and building electric car
Electric car
An electric car is an automobile which is propelled by electric motor, using electrical energy stored in batteries or another energy storage device. Electric cars were popular in the late-19th century and early 20th century, until advances in internal combustion engine technology and mass...
s.” However, on 3 November 2009 the GM board called off the Magna deal after coming to the conclusion that Opel was crucial to GM's global strategy.
With ongoing restructuring plans Opel announced the closure of its Antwerp plant in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
Sale of Saab to Spyker
Originally GM planned to sell Saab to a Swedish sportscar maker KoenigseggKoenigsegg
Koenigsegg Automotive AB is a Swedish manufacturer of high-performance sports cars based in Ängelholm.-Company:The company was founded in 1994 in Sweden by Christian von Koenigsegg, with the intention of producing a world-class supercar...
but the deal fell through in November 2009. However, there was a string of hope for the Swedish brand if the rescue bid by Dutch sportscar maker Spyker Cars
Spyker Cars
Spyker Cars is a Dutch sports car marque. The modern Spyker Cars only has the legal right to the brand name. The company's motto is "Nulla tenaci invia est via", which is Latin for "For the tenacious, no road is impassable". The marque's logo displays the piston engine of an airplane, a reference...
would be accepted. Hopes for saving the Swedish marque finally reached a good point when on 26 January 2010 a deal had been agreed for Saab to be sold to Spyker Cars, forming a company now known as Swedish Automobile.
See also
- VauxhallVauxhall MotorsVauxhall Motors is a British automotive company owned by General Motors and headquartered in Luton. It was founded in 1857 as a pump and marine engine manufacturer, began manufacturing cars in 1903 and was acquired by GM in 1925. It has been the second-largest selling car brand in the UK for...
- BedfordBedford VehiclesBedford Vehicles, usually shortened to just Bedford, was a subsidiary of Vauxhall Motors, itself the British subsidiary of General Motors , established in 1930; and constructing commercial vehicles. Bedford Vehicles was a leading international truck manufacturer, with substantial export sales of...
- SaabSaab AutomobileSaab Automobile AB, better known as Saab , is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. It is the exclusive automobile Royal Warrant holder as appointed by the King of Sweden...
- ChevroletChevroletChevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...
- Chevrolet EuropeChevrolet Europe- History :Chevrolet was established in 1911 by Louis Chevrolet and Billy Durant, the founder of General Motors. Louis Chevrolet had already built up a reputation as a mechanic and race driver, first in his native Europe and then over in the USA. He gained experience working with the largest car...
- OpelOpelAdam Opel AG, generally shortened to Opel, is a German automobile company founded by Adam Opel in 1862. Opel has been building automobiles since 1899, and became an Aktiengesellschaft in 1929...
- General Motors bankruptcy
- General MotorsGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...