OK, so far, so god, but then GM decided to back out of the sales deal at the last minute.
This is apparently because they think that bring their European division back to profitability will be easier than everyone else thinks:
The company said it expected to spend 3 billion euros, or $4.4 billion, to downsize operations, which it said was “significantly lower” than what Magna and other bidders had projected.There is also the matter that GM has next to nothing by way of fuel efficient cars in its labs in the US, because....because...They are f%$#ing morons, and they need Opel's technology in order to make fuel efficient cars in the US.
Well, good luck with that, as the abrupt reversal has enraged Angela Merkel in Germany, and Putin in Russia, as well as the their workers, who now see the entire sales fiasco as a sort of Kabuki theater for the benefit of Angela Merkel's reelection.
We are already seeing calls in the Bundestag for the immediate return of the €1.5 billion bridge loan that was floated by the Germans to facilitate this sale.
As a result of this decision, there have been strikes across Opel's German factories, with protests by people carrying signs saying, "GM - Go Away!" and "Hands off Opel!", and the German unions are demanding changes to the structure of the company, from LLC to AG (joint stock corporation), so as to increase German, and lessen US control, over the firm, because joint stock corporations in Germany mandate greater worker stock ownership and board participation.
So, GM, which will still need government support for the foreseeable future, has double-crossed and made enemies of the entire political establishment in Russia and Germany, while also creating a hostile and demoralized workforce.
Heck of a job, Brownie.
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