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Why General Motors Left Europe

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In 2017, General Motors, the largest U.S. automaker, with brands like Chevrolet, Cadillac, and Buick made one of its boldest moves in its history. It sold its European Opel and Vauxhall brand to the French automaker PSA, known for brands such as Peugeot and Citroen. It was the end of an era for GM, which had first ventured into Europe nearly 90 years before. GM left Europe after 20 years of losses, but why did the largest U.S. automaker leave such a big market? Did it simply fail? » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #GM #GeneralMotors Why General Motors Left Europe
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CNBC (1 month ago)
Why do you think GM failed in Europe?
Johnny Morphine (3 days ago)
Merv Stent gm has been a laughing stock since 73.
Johnny Morphine (3 days ago)
readyxxi GM was struggling long before Obama.
jp1234554321 (3 days ago)
Gm likes testing their product on customers instead of testing facilities. Thats why people stopped buying their cars. My money is not defective, so why would i trade my money for a defective car?
Hidong Cucuk (5 days ago)
Self interest, used to be called "bottom line".
aps01 (6 days ago)
drive a japanese or a european car for a year compared to a gm one and you'll have your answer
Joerg S (16 hours ago)
OK, did I understand this right, Opel failed because of the Unions and the Environmental regulations? And this had only happened with Opel, all the other European car makers did not have face this "hostile" environment? SERIOUSLY?
ChuckyDoll79 (19 hours ago)
Wait for the moment when GM will leave China. Then GM will be on a suicide watch.
Jacob Thompson (1 day ago)
We drive predominantly German and Japanese cars, with Korean cars (Kia and Hyundai) emerging quite quickly over here as people see the value, and quality they can get for a relatively low price compared to a Vauxhall/Opel. And, when people want a small car, they still want big car quality, hence why our small cars are so expensive compared to the US’, and they have loads more features, as a small car isn’t necessarily a cheap car over here (e.g Mercedes A/CLA, Audi A1/A3, VW Polo/Golf, Lexus CT/UX) Family cars are also traditionally Hatchbacks, not sedans/saloons, with small SUV’s and Crossovers such as the Nissan Qashqai/VW Tiguan becoming ever more popular. “Sedan’s” are typically company cars over here, as the Opel/Vauxhall Insignia is seen as a “rep mobile” for company car drivers. Of course SUV’s are continually growing, but Superminis are still No.1 in sales for most of Europe, and even then, the Vauxhall Corsa isn’t the best - a Ford Fiesta/VW Polo is a much better choice, and those are predominantly built for the EU market.
JJ LL (3 days ago)
GM failed because we Europeans won’t accept cheap American rubbish!
Dave Faddel (3 days ago)
The US is failing in most countries outside the US itself. They simply have an outdated business system. I have worked for two US companies in Africa and quite honestly it's painful. So much red tape to do just about anything. Free up and stop looking at your bottom line only, look at the big picture. US companies (all) are simply no longer competitive in the new modern world ..
kubanskiloewe (3 days ago)
as a german i have to say Opel will go down now because french are not our friends....only on paper they are. Opel and GM was great; Opel for the european market and the chevy super cars corvette and camaro for enthusiasts. Sure it was a bit dumb to sell chevy´s cheap models side by side to the cheap Opel brand But now i heard even the Corvette and Camaro will not be sold to europe anymore due to the fact they will not pass the newst emission law. But the main reason for leaving was by far that you nearly saw a dealer !!!! If you want to buy a chevy you had perhaps not more than LEXUS dealers (20 for whole germany ) The chevy cars were NOT junk at all....but the EU tax them with 12% to secure our own brands !!! Trump has a point here !
Boosting (4 days ago)
GM lacks heritage and quality. Not all their cars survive more than 4-5 years. Rename the vehicle and try and resell it again is their motto. I’m surprised they brought back the Camaro and left the name Camaro given their heritage trends.
Marco Witschel (4 days ago)
GM did not allow opel to sell their cars in North America under their own name and so in China. Then Gm would have made money! And in addition, they have sold cars like chevrolet cruz under price which is actually an opel Astra and now the question , why! The question is answered quickly! Fear! That makes Opel under the own name more money than GM. With the Opel Corsa or Opel Adam what small cars are! Had GM addressed young people who can not afford or want a big car! But that's just my own opinion!!!! P.S I drove Opel Ascona, Opel Manta, Opel Kadett and they were all not bad
Gullible buyers in US buy their cars thinking it’s patriotic, even though they are actually made in Mexico. Outside of the US, their “murica” and “detriot” schtick doesnt work anymore. And considering that no one in their right mind would buy their plastic disposable junk, it’s no surprise that their cars dont sell outside US.
x Reach The Stars x (5 days ago)
The real reason was that GM are skinny foreigner's company (non EU) so we in EU don't give a damn about these FOREIGNERS.
not tviscool (5 days ago)
Eric Boulegue (6 days ago)
the US is growing much more than Europe? what part of europe? and i might be wrong... but isn't the european union still the biggest car market in the world? china is right on it's heels but the US is not even close
Danish Khan (6 days ago)
GM left India too
Jack Stoffels (6 days ago)
The europeans loved GM special OPEL they builded in the 60 and 70s the most popular cars. The most Opel (GM) drivers only wanted Opel cars because there where better then the other european brands. Its a shame that GM sold Opel to PSA they had to build realy good cars again like the cars in the 60s and 70s.
MrChanduvarma (6 days ago)
Last month I toured around 10k kms with VW polo which has already hit 200k mark and it is one of the best rides, with american cars I will generally say no when it hits 70k mark. More over, if something happens in the middle of my journey I could get easily repaired if it's a German automobile because of availability of spare parts and If it's GM or Ford spare parts are one hell of a issue.
Guy Dumont (7 days ago)
Europeans are smarter vs the usual fat stupid American. GM makes garbage. They failed
Dead Doll (7 days ago)
I remember reading in Smokey Yunick's wonderful book Best Damn Garage In Town a story about when GM launched the Big Block Chevrolet back in the 60's. Smokey did consultation work for GM and was at the event where he met the designer of the engine. Apparently that designer was none to happy that his design had been altered in a number of ways to make it cheaper to manufacture, and he didn't mind voicing his displeasure to anyone who'd listen. Smokey explained that GM was a very tolerant company in some respects but the one thing that they'd never put up with is being badmouthed in public by one of their own. The punishment for such a transgression was banishment to their Opel or South American branches. For me the penny finally dropped. A big part of the reason that Opel were garbage, (they really were responsible for some terrible designs) was that the company was full of bitter GM engineers who were being punished by being sent there. They were getting their own back on GM by only doing the barest minimum or not showing due diligence. This combined with a large dollop of overall ineptitude from GM produced failure after failure.
xelorbossmaster (8 days ago)
From my point of view, the main reason why gm failed in Europe was because the couldn't sell their homemade engines and they had to get them built by others manufacturer such as PSA or vw
Marcus fuller (8 days ago)
Because they are CHEAP and NONE RELIABLE!!! It’s now 2019 and they are still lazy and haven’t learned their lesson. Trying to sell us Americans bland products with horrible names, cheap interiors. I could have saved them Billions by firing their Board and so-called quality team...fools!!
J O (8 days ago)
Because their inferior product can't compete in Europe, Asia and and have hefty competition from European and Asian cars on their home market. Love how little was learned of this, let me help you ALL. Europeans and Japanese think most American cars are unessesary big, cheaply made, cheap plastic and unsophisticated made, use way too much gasoline, if you REALLY wants to learn something, look to Tesla, they ARE the future, we see ALOT of Tesla here in Europe, we like green, not oversized rolling gasoline factories.
Heema Alshekhi (8 days ago)
Making GARBAGE, and expect people to buy!! how delusional How do you explain their very slow sales and poorly made vehicles here in Saudi Arabia then??? I used to be proud to drive American cars back in the 90s until early 2000s and now I'm driving a Hyundai and will for a long time!
Fred Jansen (8 days ago)
GM failed due to bad management, american designers can't design cars tailored for europe, the funny thing is opel/vauxhall is profitable now (1 year later) that says enough and opel failed because they dont sell SUV's and trucks, fing moron nobody buys trucks in europe, and GM managed its way out of highend cars like BMW or AUDI long ago lots of american morons talking rubbisch market share fell because they lacked development and the right models, and cut corners wich lead to high fuell consumption and lower quality, and thats caused by bad management
500stylesproducts (9 days ago)
I AGREE it all depends on peoples taste
quantumphaser (11 days ago)
GM was ahead of everyone with the EV-1 project in the nineties. They would have been the 1st to market with the amazing electric car years and years before anyone. And the had the mass production capacity to actually make this a reality very quickly, unlike a startup with the same ideas. BEFORE there was even the IDEA of Hybrids, like the Prius. They could have owned the World Market. But they throw it away with both hands and I don't feel sorry for them at all after what they did. When they crushed the EV-1s, they crushed out their own future.
Butane 1980 (12 days ago)
Hopefully all american companies retire from Europe.
Butane 1980 (12 days ago)
Americans don't know how to manufacture an engine not consuming less than 10L/100 km
John Kimuhu (13 days ago)
It seems American companies are leaving every markets except their own. From Europe to Japan the manufacturers can't keep up with basic regulations
brian stuart (13 days ago)
GM left Europe because Europe is tired of being f***** by them and told them to get out
long-time listener , first-time caller (14 days ago)
All that and, oh yeah, *they're built to break.* Japanese cars have no problems and their market share is pretty much the rosiest picture of any industry :-)
sunny mittra (15 days ago)
They ran away from India also 😂😂😂😂
Theodor Falkon (15 days ago)
I hate how americans think they have to dominate in every category imaginable
VK HAM (15 days ago)
GM has been producing Junk cars. Certainly, everyone suffered losses — but very few of them came as close to getting wiped out of existence as GM.
Ashish A Johnson (16 days ago)
GM Left India years ago Ford is doing good here
jake black (17 days ago)
I don't particularly want to hear excuses like "too many regulations, unions, and cost of labor". European companies somehow manage those issues. GM is a national embarrassment. If an American company is not innovating and disrupting industries then it has outlived its usefulness..
ca8rio8ca (17 days ago)
The reporter's pronunciation of Peugeot and Citroën made my ears bleed.
Roy W-G (18 days ago)
American cars being the butt of jokes on Top Gea r for about 20 years can't have helped!
wdefghjuefh degtfthtgf (12 days ago)
Fiat means fix it again today they made Chrysler worse as Italians can make a car look nice but be on a flatbed every other week
rolla (18 days ago)
American cars cannot compete with the european and japan cars. Except ford focus and fiesta
ROLAS ** (18 days ago)
Cuz they like to buy from frauds like volkswagen.
Gravemind (14 days ago)
Or maybe they prefer quality well built cars that don't break all the time.
Nu Pagadii (18 days ago)
Poor quality vs competition. Literally "Designed to break" - Opel Vectra/Insignia were the best example. GM engineers are asked to design vehicles to brake after warranty, customers knows that today.....
Gravemind (14 days ago)
In the UK no cars depreciate quicker than Vauxhalls its insane in 2 years they lose 50% of their value.
meowmeow (19 days ago)
Ha.... I’ve live in Germany for 6 years. They understand that if they lose BMW/Audi/Mercedes/VW, they lose jobs, and the economy will suffer And probably the biggest reason,.... they’re extremely prideful and stubborn.
Phone Shop (19 days ago)
WHY USAs (trump) didn't make ban on german cars because of this ???? why they allowing to be nasty to chinese ppl but they duck on germans or others EUs ???
Mr MEMé (19 days ago)
What Happened to Holden
lightningsmokerXx (19 days ago)
GM fails because they refuse to make a quality product. They make nothing that can compete with the Toyota's and Honda's of the world.
Sponge Bob (19 days ago)
In Europe you gotta be able to park your car but a pickup truck would take more space than one parking spot
Gravemind (14 days ago)
Yeah try going through a multi storey car park in one of them. I saw some idiot who imported a Dodge charger to the UK struggle around one its just a saloon same size as a BMW 5 series but it had a horrendous turning circle so had to take multiple swings at each corner. Some American cars just won't cut it here.
Bash (20 days ago)
Brexit 🤔
Marvin Kim (20 days ago)
Make craps and wonder why you fail???
rivaterrier (20 days ago)
Unbelievably facile analysis.
Lukas Campaert (21 days ago)
The way you pronounced peugeot and citroën, I'm dying and I showed this to my family like wtf, you're a billion dollar news outlet but you don't check before you pronounce foreign words??
Ssar1702 (21 days ago)
Garbage economic model (PSA made lots of profits really quickly with Opel), evil pro-oil lobby (they bought street cars to get rid of them)... they got what they deserve.
Jamie Shields (21 days ago)
Why not ask a Australian for opinion like mind! GM n Ford has made big mistake and with GFC the bean counters run the car companies. Here in Australia Ford made poor design car of AU Falcon which effected sales until BA model. Holden did well from late 90’s until 2006 when sales drop off this turning point for SUV. Holden did right by building VE, VF models but car should been slight down size n came with smaller V6 n diesel engine but it didn’t. Ford could have done the same but US parent companies weren’t handling over the money. Nail in coffin was non sharing platform of Ford, Australian government stop investing in the industry and labour cost but really Ford n GM knows best. X amount years later Ford been lucky with sales of Trucks but at what price of truck n no small cars been built. GM hero car was been built over Europe but that’s stuff now. Canada n Europe could learn what happened in Australia. If GM don’t produce car for rest of World it’s dead if fuel crisis hits. My solution is combine GM n Ford in Australia, rebuilding cars in Australia and manufacture trucks RHD with efficient engines n another line efficient small SUV cars and if works allowed be sold to Europe in small but sustainable numbers. I am sick of hearing electric cars will work when here in Australia we don’t have enough power in summer. GM is just stupid n wasting money no accountability. Holden was making more money on Commodore sedan then other GM car
F G (21 days ago)
Simple: in Europe you have to be honest with the customer who has to know what you stand for. With GM that was not the case. Opel was “empty”. The high class german limousines and sport cars were last seen in the 70’s, from that onwards it went downhill. It was neither german nor american. The french will make the same mistake with Opel. Make it back into real honest to god proven and trustworthy german cars? They can’t. Otherwise they would have done it with their own already. French is real crap. So make it french is definitely not an option.
Boing Boing (22 days ago)
3:31 bs excuses: cost of labor, regulations and the evil communist european "unions"😈 🤣🤣. Walmart had the same bs excuses falling in Germany. umerica...wunderbar
Gravemind (14 days ago)
Ford manage to work round it though. which makes them look foolish.
Cyrus Hale (22 days ago)
Opal and Voxhall were originally European.
Nathanael Lewinsky (22 days ago)
To put it simply: Europeans don't want oversized fuel hungry plastic interieur road tanks as their cars. The amount of cup holders in not everything!
Bruno Cantanhede (23 days ago)
Chevrolet occupies 1st in sales in 🇧🇷,with a non safe car and a power engine released 20 years ago, compact and ultra expensive. PSA is struggling in 🇧🇷, nobody relies on it, although their cars are better constructed, but nobody relies on PSA. 🤷🏻‍♂️
mans410 (23 days ago)
Gm wanted the market to adapt to GM production not GM adapting to the market, the arrogance cost money.
mans410 (23 days ago)
Making cars that need to be constantly depending on the dealer because if not, some bad design part will brake and destroy the whole engine, that is why people don;t like GM. People are not stupid.
mans410 (23 days ago)
The future of automobile don't give a damn what gm does.
ralph roadster (23 days ago)
GM has been building junk cars.quality is junk.sad to say. There expensive suits don't cut there crazy salaries and chapter 11 around the corner...
Santosh Thakur (24 days ago)
SecondComingTwice (25 days ago)
Self Driving cars. The Internet of 'things.' How about I'll look in my own refrigerator to see if I'm running low on butter and my car still has a clutch, and an ashtray - and isn't connected to the "Web" instead? ..said the guy old enough to remember the freedom of having his own steering-wheel.
Noah Thompson (25 days ago)
GM Make bad cars.. and europe didnt want them...
Horace M (25 days ago)
They failed because we Europeans are looking for good quality. How can I compare my Audi A8 and A6 with cars from Ford or GM? I don't want a bad car, so I hope that Ford will leave soon Europe.
thijs78 (26 days ago)
It’s a video without mentioning the real problem: GM wasn’t able to deliver cars that covered the need of the European consumers. That had something to do with the design and especially quality.
thijs78 (24 days ago)
Ste Kon exactly.
Ste Kon (24 days ago)
Toyota, hundai, kia and skoda could. Opel made loss for 15 years and french made profit after 1 year!
Marcel Germann (26 days ago)
In 1975 the most newly registrated cars in Germany were made by Opel. It actually started in the 1980s with José Ignacio López de Arriotúa becoming lead buyer of Opel. He gagged the component suppliers to a level that was unknown until that time. This lead to a massive lost in quality of the parts, and therefore for the whole cars. That's why this effect is called "the Lopez-effect" here in Germany. Opel could never recover from this big fail. And actually Lopez went from Opel to VW, with seven of his "warriors" (that was the way he called them). VW was crippled at that time, and for his methods to reduce production costs he was called "the strangler of Wolfsburg". BTW. public prosecutors investigated against him and his team for industrial espionage, after leaving Opel they still had documents and data for new Opel models in their posession. Lopez had to pay 400,000 german marks, VW had to pay 100 million US dollars to GM and had to buy parts from GM for one billion dollars. VW recovered from this very fast, but Opel didn't. The lowered manufacturing costs were actually paid by the customers, for example on the Golf IV. The relais for the blinkers was built into the switch for the warning lights. So if the relay failed, the repair shop had to replace the whole switch instead of just simply the failed relay. Causing higher costs for the customer.
Henk&Nel eastwood (26 days ago)
now we only need 1 video that says...why the USA left the planet!!! USA the United States of Assholes!
Manny Radzky (26 days ago)
They make GARBAGE!!!! It’s keeps shrinking.
J R Deckard (26 days ago)
GM: "We're going back to the U. S. for another bail out."
Brian Cossey (26 days ago)
Europe kicked Ford out
Deep_Dive (26 days ago)
Who the hell was that "expert", US market cars have never sold in Europe but Ford and GM were the largest manufacturers in Europe as little as 20 years ago. The cars were designed and built in Europe. The issue came as they tried to make these cars global, as a result their cars lacked the sophistication required for the EU market. The European premium brands have now issues selling for example the same 3 series BMW globally they just pitch it at a more premium market outside the EU.
DrSysop (26 days ago)
GM sucks KA KA now! Transmissions made in China! They not close the Mexico plant & costs will rise as tariffs will affect vehicles made in Mexico such as the Trax which is made there. GM no longer makes the sedans except the Camaro & Corvette. Worst car they made was the 16-19 Cruze especially the hatchback which was made in Mexico & Malibu as the transmissions failed & lost so much value. GM leasing should be shot as there costumer service is so poor.
dEcmircEd (26 days ago)
Funny how they just make excuse for ten minutes. Their business model is basically cashing on gaz guzzlers, without making necessarily better cars...
StopDropandLOL (26 days ago)
I wanna know what the Graffiti at 0:40 said. This is the real question that needs answering.
matty bowler (26 days ago)
I'll tell. You why they failed here 🇬🇧 Let me explain it like this European cars mostly have economical engine with small capacity, ussualy they look like expensive interiors and build quality is a big. Over in the 🇬🇧 American cars or just slapped together with taccy interiors. (Ford is good though here) #transitthebest
matty bowler (26 days ago)
Vauxhall were making cars awful thank the lord they left cheap plastic like Americans cars and handling to fit when they didn't get lotus involved
Paulo Pereira (26 days ago)
One year later...opel with profits.
Jeff S (26 days ago)
Now GM needs to ditch the Buick and GMC brands. Buick is a premium brand and is essentially a step above the Premium trim level Chevy's. Plus, since most Buicks are rebranded Opels, they won't have anything to go off of soon. (Back in the day, most Saturns were rebranded Opels.) GMC trucks are a slight step above their Chevy counterparts, so they aren't really necessary either. GM should just be Chevy and Cadillac with the addition of a higher trim level above Premium while still making it cost less than the entry level Cadillac of the same line. Bring in the Avenir trim to slot above Premium that has a bit more luxury, nicer colors inside and out, more sound proofing like Buicks have over Chevy, etc. It's really dumb and costly to make the same car or truck across 4 different brands that have very little to distinguish them from each other a part from the body panels and dashboard giving the design language of each. One may argue that VW is no different, but I disagree. VW is the "base" brand with Audi being their luxury version. VWAG also owns Porsche, Lamborghini, Bentley, etc. While each brand may share the basic platform, or variant of (say Toureg, Q7/Q8, Cayenne, Urus, Bentayga), those cars are very different from one another in many more ways than the 4 of the same GM trucks are different from one another (say Traverse, Acadia, Enclave, XT6) (I understand they just made the Acadia slightly smaller). Or Tahoe, Yukon, Escalade - this would be more profitable with just two rather than three. Having just the two, GM can actually try to make the Cadillac luxury brand an actual contender against the likes of BMW and Mercedes. They want that, but are falling quite short. It made very good sense to ditch Saturn, Pontiac, Hummer, etc back in the day. Now it's time for Buick and GMC to go.
Fierce Omega (26 days ago)
GMC’s lineup should mostly consist of Medium-Heavy Duty Trucks, Buses, Military Vehicles, and Emergency vehicles and while Chevrolet’s commercial lineup focuses only on Pickup Trucks and Vans (with chassis). GMC just sells duplicate vehicles and SUVs which doesn’t even meet its Professional Grade slogan. As for Buick it should be a Luxury Premium Marque brand with main rivals being Acura, Chrysler, and Entry-Level Lexus while Cadillac targets Luxury Performance brands like Mercedes and BMW.
Paolo Piotto (26 days ago)
GM knows something other cars manufacturing doesn’t. Shhhhh......
Pete FlintMurray (27 days ago)
What?! Opel and Vauxhall (and Saab for that matter) were great European companies. GM failed when they tried to figure out a way of selling European cars in the US. Selling the insignia in the states for bmw prices was just never going to work, Opel just aren’t a premium brand. That and continuing to try sell old Daewoo as Chevys.
MHG1023 (27 days ago)
... and who would´ve thought it: Opel makes a profit again. Just about one year after Opel was sold to PSA http://www.thedetroitbureau.com/2018/07/psa-makes-opel-profitable-a-year-after-buying-it-from-gm/
tarabit (27 days ago)
Vauxhall / Opel is a well respected brand and is one that Europeans do buy lots of whereas American branded cars in Europe are avoided as they are seen as the poorest quality in the industry and you’d have to be crazy to buy one as the only buyer after you is the salvage yard. Literally no one here wants an American branded car. Vauxhall predominately sells in huge fleets to rental, leasing, Police and large corporations and because they’re so widely available used it’s hard to retain a high price. We purchased a 3 month old Vauxhall Corsa Elite from the main dealers with only 6 miles on the clock for half the RRP. The European car market favours small economical cars with high specification. Ford and GM trucks do not fit in at all with European lifestyles.
Mr. Salty (27 days ago)
GM executives didn't want to crush the euro market, plus their (euro) golf courses aren't that good. GM's products have only gotten better so they decided to keep the best for the home country. They were also busy lobbying for tax bail outs. GM is best according to their paid reviews!
STS 1 (27 days ago)
Yep, GM vehicles are not as good as Toyota's or Honda's but ... neither are German brands and ... in case you haven't heard, German car companies consolidated into one, it is called "DEMPM" - Deutschland Endless Money Pits Motors and their selling slogan is: "Finest luxury vehicles ever made till warranty is up" , then get ready to REALLY appreciate that ultimate driving experience $$$. Seems their paying back for WWII loss and we all know, payback is a b....
david brayshaw (27 days ago)
I can only speak for the Australian market in the context of GM. General Motors Holden (GMH), the Australian branch of GM, operated here with the aid of hundreds of millions of dollars in Australian taxpayer subsidies. Yes, that's right, GM, one of the jewells in the crown of flag waving American Capitalism survived for several decades here in Australia solely on the basis of handouts or as some might put it, socialist benevolence, not as a response to stiffening competition and technological prowess. In its formative years in Australia GM produced vehicles that were "cutting edge". Monocoque chassis equipped with small, economical, OHV six cylinder engines, suspension that was up to task of the many unsealed roads here and good customer support made them the choice vehicle for Australians. Their product started to stall in the "70's with the fuel crisis and with increasing emission standards yet they traded well on the back of their initial success's and the Australian public's will to call GMH an "Aussie Icon". By the end of the seventies GM Australia's answer to the rise of the likes of Toyota and alike was to "shoe horn" a gas guzzling pushrod six (v8 was an option) into the body of an Opal. It still sold well but with a few miles on them the quality of the design and manufacture started to show. The depreciation on these vehicles was significant and on top of the Japanese competition the European manufacturers started to sell well in the upper end of the market. Roll on into the late eighties and GM released its "all new" model complete with an engine sourced from a 1962 Buick and live axle rear suspension. The Japanese and German invasion was buoyed by the lack of competition and while GM sales were good the writing was on the wall. By the early noughties Australians were moving quickly towards either 4WDs, small hatch backs and before too long, SUV's. GM's response to this was not only too late, it was laughable. GM purchased Daewoo (remember them) and rebadged their buzzbox trash and dumped it down under. The Australian market shunned the product. GM's next bright idea in this burgeoning new market was to develop a new "high end" sedan. GM proudly advertised that they had spent one billion dollars developing the new car. This was not exactly true as once again GM were very happy to stick their hand out to receive significant public funding in their endeavour to build a car that the market no longer wanted. Predictably sales slipped away and a decade or so later government subsidies were axed and GMH was history. Of course they did manage to syphon 100 million dollars out of Australia back to their US parent company. Australians continued to buy 4WDs, hatch's and SUVs. General Motors is a company that thrives on government handouts be it handouts from the U.S. or Australia or perhaps other countries. General Motors has become accustomed to the ways of corporate socialism. Product planning, innovation and competition are just not in their vocabulary. Their vehicles may still have some relevance in the US, just, but with their "bank of Mum" mentality, there wont be much time left there either. If you're from the US and reading this, trust me, you wont miss them. GMH was once Australia's pride and joy and we don't miss them a bit and it's nice not to be handing your hard earned tax dollars to a multinational corporation.
Pavle Pavlovic (27 days ago)
is this a joke , Remember 2 big to fail , loses end up as earnings for them , its loses for. When they say 2 billion in loses ,that means you lost 2 billions , they earned that much
Andy's Shop (27 days ago)
And all of yall are complaining about how they are "traitors" for laying off workers here 😂. They left europe so they could invest more in the US
guy proulx (16 days ago)
Is that why they recently shut down 4 plants in the U.S and 1 in Canada?
Thiosemicarbizide Benzoyl Alcohol (27 days ago)
The worst decision in the history of the car. The only real profitability is sales and development. GMs profitability in America is stock buybacks. To actually say America is a growing economy with the highest debt margin of ANY economy is absurd. Not everyone is stupid enough to realize THERE IS NO CHINESE MARKET FOR GM, and probably never will be since Trump.
Pat Pikulski (27 days ago)
GM is trash... all around.
DaddysFatBelt (27 days ago)
"poogeo"...? Yes, agreed. LOL
Scott DC (27 days ago)
Simple : GM made boring, uninspiring cars for the bottom end of the market. Europeans want something a little more than cheap-and-cheerful, that's why we buy VW's and BMW's. They get the mix right between good styling, good quality and reasonable price. That's why they survive, people want their product. If you pump out dull dreck, people go elsewhere.
Tringmotion e-bike & Cycle Store (27 days ago)
It's quite simple - they are raging amateurs at business. A friend of mine did SAP integration for them and they were guessing stock values between countries among other things. In other words, they couldn't use higher margins of SUVs to cover their behaviours. PSA has put some sanity in place and turned an instant profit. Your expert does not speak to reality. Vauxhall, Opel and Ford used to be viewed as local brands and hold the highest sales in the UK. Premium product included the Lotus Carlton and VXR product. They were still using ancient componentry in Ford and GM europe product (30 years plus old). This is not news, it's propaganda.
Lehel Zelenka (27 days ago)
Everybody laughed when PSA bought Opel and Vauxhall saying they will produce even worse cars. GM had no clue what Europeans wanted from their cars. Remember when they decided that the Astra H didn't need a coolant temperature gauge? You just had a warning light when the engine already overheated. PSA will resurrect these two brands easily.
Nigel Guest (27 days ago)
I got half way through this whine before giving up. Why is Ford so successful in Europe?
Arran Grant (27 days ago)
How can they say they made cars no one wanted to buy Vauxhall is the third biggest selling car brand in the Uk and has three cars in the top 20 best selling cars in the Uk the Corsa Astra and Mokka. The Vauxhall Corsa is the second biggest selling car in the Uk just behind the Ford Fiesta
Operation no Control (27 days ago)
People in Europe mainly want hatch backs end of discussion
safcforme (27 days ago)
'Per-jo' not poo-jo' lol
Martin Kaufmann (27 days ago)
GM had an ingnorant culture. Thats all! This report is banana
mrc4nl (27 days ago)
GM took a lot of profit from Opel to make the numbers for the US market look better. One year after the sale Opel started to make profit again in europe.
RiderLiving (27 days ago)
So PSA said theyve restored Opel to be a profitable company by cutting costs. As good as that might sound, it kind of scares me aswell. What kind of costs did they cut? PSA isn't exactly known for reliable cars. This might be the end for Opel as we know it, being reduced to nothing more than a cheap French car that's pretending to be German.