The World From Berlin 'Germany Is United Behind Opel'
Carmaker Opel continued to dominate economic news this week in Germany following a visit to Washington by Economy Minister Karl-Theodor zu Guttenberg.
Guttenberg traveled to the US on Monday to discuss ways to rescue the German brand, which is a subsidiary of Detroit-based General Motors. The visit highlighted the delicate, complex position of Opel's thousands of workers, who are dependent to a certain extent on Washington to approve GM's plans for the Rüsselsheim, Germany based firm.
Opel is increasingly becoming a touchstone for concerned German commentators, who see the government's reaction to the carmaker's troubles as a good indicator of where the rest of the economy might be heading.
The leftist Berlin daily Die Tageszeitung writes:
"In November 2008, the suggestion sounded both visionary and crazy: sell Opel to the Bonn photovoltaic battery company Solarworld and create 'the first green European auto company.' The company scratched its head in wonder, and kicked the offer to the curb. Opel's not for sale, they said. That, of course, was then."
"Today Opel would be thrilled if anyone would take them. And the idea has enormous potential, assuming one doesn't limit it to the production of electric cars. With lots of engagement, lots of money and lots of imagination, it might be possible to create an 'O2pel' from the automaker's ashes -- the first sustainable auto company of the 21st century. Would such a green giant be possible? It would be in demand, without a doubt."
"In the debate over Opel's future, one thing has become clear: Its product isn't as important as the jobs it provides. It's not a good sign for any industry when what goes into the factory is more important than what comes out. Opel workers are known to be efficient and engaged, at the head of the field when it comes to engineering. But there is nobody out there saying: We need more Opels on the street."
"On the contrary: Secretly, lots of people hope that in a world with too many automakers some of the competition will disappear. The political dilemma is that there are lots of employees and suppliers who face unemployment if the company goes under, which would be expensive for the social security system. If billions are going to be doled out in an election year, they should go to saving jobs."
"The phrase 'crisis is also an opportunity' hangs heavy on thousands who are on the verge of losing their jobs. But in Opel's case it's true. In the global car market there's only one apparent hole: a company offering sustainable transportation. So far, the VWs, Renaults and GMs of the world have chased customers with the same useless solutions to real problems. Alternative engines, radical gas saving cars, steps away from organized immobility in big cities have all been seen as science fiction in the head offices of big car makers."
Business-oriented Financial Times Deutschland writes:
"Germany is united behind Opel. (Conservative) Christian Democrats and (center-left) Social Democrat politicians agree they need to amputate the German arm of General Motors, if it's to be saved somehow. And on his big trip to the US, the new economy minister gave signs that he was really Germany's Opel minister."
"Opel has turned into a hot button issue for the upcoming German elections in the fall. It will be tricky. Whether economically or politically, the end game for this economic crisis will be found at Opel. It seems that any decisions will take weeks or even months. In this time, though, it will also become clear that Opel isn't the only German company in serious trouble. Across all sectors of the economy, the crisis will put many more companies and jobs in jeopardy. The crisis at Opel, apparently so central, will end up being just another in a growing number of crises."
"The argument that taxpayers can't help every company on the verge of bankruptcy and that it's not a good idea to distort the market is still theoretical. Or, in political jargon, something thought up by academics in their ivory towers. In a few months, though, it will be a practical and visible problem. Politicians will then have to come up with good reasons why they're ready to help one firm and not another. For economic policy, this is an opportunity: Instead of micromanaging more and more firms in crisis, politicians will have to use their much more important macroeconomic tools."
"Opel employees can only hope that their early descent into crisis ends up being an advantage -- because their rescue plan is being drawn up before the crisis fully develops and forces politicians to change their ways."
And Berlin's left-leaning Berliner Zeitung writes:
"The Opel crisis threatens the government from two directions. Too much involvement by the government is just as risky as relying on management in Rüsselsheim and Detroit. Politicians must find a middle way between these two extremes. They've just started to look for what that path might be."
"The new economic minister's trip to the US marked a change. Opel has been sinking into crisis for almost a year, and has reached out to the federal government for help in the last few months. Only now has the government undertaken intensive, earnest talks with the heads of Opel's US parent company, GM. And for the first time they've approached leaders in Washignton to look for a mutually acceptable solution to the crisis."
"There were a lot of reasons behind the hesitation and delay besides the reluctance of the government. The onset of the crisis took place at the same time as the change in administrations in Washington, which brought with it a change in staff. Washington wasn't ready to deal. Berlin's lamentations recall the ironic question posed by former US Secretary of State Henry Kissinger: 'When I want to call Europe, I cannot find a phone number.' "
"GM has to find a way to work with its European subsidiaries to find the right mix of separation and cooperation. The company doesn't just need pressure from Washington and Berlin -- it also needs political support, hopefully administered before taxpayer money is handed out. This kind of help, running through the options and possible guarantees together with close cooperation from the governments -- has been rejected thus far, worsening the crisis for GM and Opel."
"That Berlin and Washington are finally coming together to cooperate with each other and with management is good. But it's not enough. For one thing, the other European countries with GM subsidiaries need to be more involved. For another, they all need to sit down together, and not deal with each other bilaterally. Only some sort of round table, the sooner, the better, can create the needed consensus and find a solution. If indeed a solution is possible, given the seriousness of the crisis facing the global auto industry."
-- Andrew Curry, 12:45 CET