http://www.reuters.com/article/privateEquity/idUSLO13445820081124

http://money.cnn.com/news/newsfeeds/articles/djf500/200811191117DOWJONESDJONLINE000673_FORTUNE5.htm

That is what I fear. I like the way they try to have a European regulation to avoid countries subsidizing industries and create an anti-competitive situation. But I guess that when the going gets tough, it will be every country for themselves due to political pressure…

The commissioner in charge of imposing the competition rules is the Dutch Mrs. Croes. And she’s quite firm about not giving any direct support. I understand that the German commissioner is doing some smooth talking on behalf of his country/government but he doesn’t have a rats a** to say when it comes to competition and direct support to the automotive industry.

They made an exception for the banks because – according to the EU commission – the whole economy would fall if the banks would go bankrupt. The bankruptcy of opel (or PSA/fiat/…) would be a great loss but it would not make the (business) world stop turning.

But of course, if the political pressure is strong enough, Croes just might have to accept direct financial support (but for the moment she will not approve direct support).

Reported statement from the EU industry commissioner:

“He also said that the EU would not consider the assistance offered by the German government as anti-competitive towards other European car makers, because Opel’s problems were being caused by the decline of a US firm.”

The industry commissioners name? Günter Verheugen. He just happens to be a German politician. What a coincidence…

Let Saab and Opel have a talk over what could be done to help their sales. How much more could they cooperate. In Sweden for instance it has for several years been almost mandatory for Saab dealers to also sell Opel.. Why not do the same in Germany? On the tech side that would not be a problem since the two syblings share a lot of components.
The HUGE problem IS that in Sweden Saab dealers treat Opel like something the cat draged in and I guess in Germany most Opel dealers wont accept Saab as their more “premium” sybling. Well it´s time for everybody involved to see that Opel IS one he*k of a good car and that Saab IS Opels sybling with loads of shared components but with a twist, their own design, in some cases components with higher quality etc.
Saab and Opel should be what Audi and VW is to one another. You could ask any Audi owner if he recognize VW (or the other way around) as a sybling and 95% would say Yes. Ask a Saab owner or Opel owner and 25% would say Yes. There is not a mutual respect within the two companies, not a clear line between who is premium and who´s not. And WE (or many of us) should be ashamed becase of the way we speak of Opel.
If Saab dealers in Sweden would be more humble towards Opel then more Opels would be sold and those customers not lost to ex VW. And if more Opel dealers in Germany would be more humble towards Saab, then Saab would get more registrations.. Registrations that now go to ex Audi.

Ok?

/Tompa

When it comes to competition, the EU can impose it’s will on (local) governments and companies. That’s why the European Commission already – before any financial help was given – made clear that it will not accept that governments would give direct support to the automotive industry.

Just an example : The European Commission has just forbidden Italy to give a rescue credit to Alitalia (the “official” Italian airline company). And guess what, Italy did not give that credit line to Alitalia (even though Berlusconi had already promised financial help).