Road rage
July 15, 2011
Normally General Motors makes a point of not commenting on speculation. But when Volkswagen boss Martin Winterkorn dared to speculate publicly about the future of GM's German subsidiary Opel, there was a swift reaction from the headquarters in Detroit.
Winterkorn suggested that Opel could be sold to a Chinese investor, repeating industry rumors that have been floating in the auto industry for a more than a month. The comment prompted a sharp rebuke from GM.
"Opel has belonged to the GM family since 1928," a statement declared, before adding pointedly that though it does not generally comment on rumors, "unfortunately, some of our competitors do not show similar restraint."
According to GM, Winterkorn's statement "continues a regrettable pattern of fanning speculation as Opel makes solid progress in its restructuring, in generating improved operating results."
Happy family
This is the first time that GM has commented directly on the Opel rumors since they emerged in trade magazines in early June. A few weeks later, Opel boss Nick Reilly countered by saying that GM was "very happy" with efforts to restructure its subsidiary.
GM appeared to reiterate this view with this week's statement: "GM is pleased with Opel's solid progress over the last year in turning around its business."
GM also said it was prepared to continue investing in new products for the European market, particularly Opel's new electric car, the Ampera. The Ampera is the European counterpart to GM's Chevrolet Volt, which has already established itself in the US market.
Winterkorn made his incendiary comment to journalists at a promotional event, after which they appeared in the Frankfurter Allgemeine newspaper. Volkswagen is aiming to supplant GM as the world's leading carmaker.
Both GM and Volkswagen declined to comment further.
Author: Ben Knight (dpa/Reuters)
Editor: Andreas Illmer