Decoding General Motors' Decision to Part Ways with Opel

by AutoExpert   |  7 December, 2023

Share :

In 1929, General Motors (GM) made a strategic move by acquiring Opel, aiming to dominate the European auto market. Alfred P. Sloan Jr, the then-CEO of GM, envisioned this acquisition as a step towards making GM a European automotive powerhouse. Indeed, for a while, it seemed like a success story with Opel becoming the largest automaker in Europe by World War II.

Opel's journey under GM's umbrella was not without its highs and lows. The brand enjoyed popularity in Europe, especially in the 1970s, even outperforming Volkswagen in Germany. However, as GM shifted its focus from quality to financials, Opel's market share started dwindling.

Opel

The idea of selling Opel first surfaced in 2009 under Fritz Henderson's leadership at GM. Despite the initial rejection, this idea foreshadowed future events. By March 6, 2017, GM's European chapter closed with the sale of Opel and Vauxhall to the PSA Group, marking an end to an era for $2.2 billion.

The big question is: Why did GM retreat from Europe? The answer lies in a mix of chronic financial losses and the unexpected twist of Brexit. From 2011 to 2017, GM's European ventures bled about $1 billion annually. Mary Barra, GM's leader at the time, decided to pivot away from these losses.

Opel

Despite efforts by new CEO Karl Thomas Neumann in 2014, and a near brush with profitability in 2016, Opel couldn't completely turn around. The Brexit referendum in 2016 further complicated things, impacting the automotive industry significantly. Opel, already on shaky ground, felt these changes acutely, leading to production cuts and reduced staff hours.

Ultimately, GM chose to redirect its focus towards more profitable markets: the U.S. and China. In Europe, American cars, including GM's offerings, faced stiff competition from local brands. The company's strengths in larger vehicles like Cadillacs and trucks did not align with the European preference for smaller, more efficient cars. With the booming love for SUVs and trucks in China, GM found a more receptive market for its key products.

Opel

The decision to sell Opel was not just about cutting losses; it was a strategic realignment, refocusing on markets where GM could leverage its strengths. This move illustrates the complex interplay of market dynamics, brand strategy, and geopolitical shifts in the global automotive industry.

Recomended:

The E30 M3 You’ve Never Seen: Student Designer Unveils A Modern Twist On A BMW Classic - Photo
Concept
The E30 M3 You’ve Never Seen: Student Designer Unveils A Modern Twist On A BMW Classic

The E30 M3, a legend that refuses to fade, gets a fresh twist in a bold redesign by Ihn Lee, a student at Korea National University of Arts. Lee’s digital reimagining doesn’t just pay homa

AutoExpert
Honda Super Cub 50 Gets A Stylish Send-Off With Final Editions - Photo
Others
Honda Super Cub 50 Gets A Stylish Send-Off With Final Editions

Honda is phasing out small-displacement motorcycles to keep up with stricter emissions standards and the rise of electric alternatives, marking the end of an era for the iconic Super Cub 50. But Honda

AutoExpert
Daewoo Matiz With A 3.2L V6 Engine Swap Shocks The Streets - Photo
Tuning
Daewoo Matiz With A 3.2L V6 Engine Swap Shocks The Streets

In the world of wild engine swaps, this Daewoo Matiz from the UK stands out as a true beast in sheep’s clothing. What looks like a quirky, unassuming city car is actually packing a 3.2-liter GM

AutoExpert
Navigating Car Repair: Should You Pay for Unsuccessful Mechanic Labor? - Photo
Tips & Tricks
Navigating Car Repair: Should You Pay for Unsuccessful Mechanic Labor?

Ever tаken your car to the mechanic becаuse it started making some weird noise, only to have it sit there аll dаy and still come out unfixed? Yep, that’s a head-scratcher. You're left wonder

AutoExpert
Why Diesel Engines Don't Use Spark Plugs: The Science Behind Compression Ignition - Photo
Others
Why Diesel Engines Don't Use Spark Plugs: The Science Behind Compression Ignition

Ever wondered why diesel engines don't use spark plugs? Well, they're а different breed from their gаsoline siblings, even though filling them up at the pump looks pretty much the same.Her

AutoExpert
Tesla vs. Top Gear: A Look Back at the Epic Legal Showdown - Photo
Others
Tesla vs. Top Gear: A Look Back at the Epic Legal Showdown

Ah, remember the drama when Tesla decided to take on Top Gear? That’s one throwback that’s hard to forget! Way back before Elon Musk became a household name, he was just starting out with

AutoExpert
Batmobile Dreams Come True: Warner Bros Introduces Official Tumbler Replicas - Photo
Car News
Batmobile Dreams Come True: Warner Bros Introduces Official Tumbler Replicas

We already saw fans bringing the Tumbler from The Dark Knight trilogy to life, but now, Warner Bros.' came up with something really jaw-dropping.Discovery Global Consu

AutoExpert
Mazda MX-30 Retro Sports Edition: A Stylish Comeback For The EV - Photo
Car News
Mazda MX-30 Retro Sports Edition: A Stylish Comeback For The EV

Mazda bid farewell to the MX-30 EV in the U.S. after struggling with sales—only 66 units sold in the first half of 2023 and a mere 324 throughout 2022. But don’t count it out just yet; in

AutoExpert
Last Of Its Kind: Suzuki Italia’s Jimny Mata Brings A Limited Edition Farewell - Photo
Car News
Last Of Its Kind: Suzuki Italia’s Jimny Mata Brings A Limited Edition Farewell

Suzuki Italia is giving their beloved Jimny a final send-off with a special edition limited to just 150 units in Italy. This exclusive model, named the Jimny Mata, builds on a concept s

AutoExpert
Meet Notos, Boreas, And Eurus: Greek-Inspired Custom Kits For Tesla Models At SEMA - Photo
Car News
Meet Notos, Boreas, And Eurus: Greek-Inspired Custom Kits For Tesla Models At SEMA

Taiwanese tuner Custuning has something new in store for Tesla enthusiasts who want more customization options. Specifically, the tuner is showcasing three bold body kits for the Tesla Model

AutoExpert