General Motors is already feeling the backlash of its decision not to sell European automaker Opel to Magna International, as workers in Germany went on strike. GM faces not just ire over American-European cultural differences, but worker unease at job security, European-style.
The old Chrysler was famous for its aggressive marketing and auto-show stunts, like running a cattle drive down the streets of Detroit to publicize a new pickup. But for its coming-out party on Wednesday, the new Chrysler stuck to a far more serious and subdued script, says the New York Times.
Keeping Opel is the best strategic option for General Motors given the improved economic conditions, but the automaker needs to appease German politicians' and trade unions anger over its about-face and adapt itself to German ways, European analysts said Wednesday.
Bitterness, anger and disbelief mixed with betrayal and even resignation are just some of the emotions boiling within Germany following Tuesday's shocking news that General Motors will scrap its sale of Opel.
General Motors posted its first monthly sales increase in nearly two years as a rebound in industrywide U.S. auto sales in October pointed toward a gradual recovery for the battered sector.
General Motors reversed course by abandoning a long-expected sale of its Opel to a group led by Canadian auto supplier Magna and opting to keep the European unit after a year of uncertainty and high-stakes political negotiations.
General Motors reported an increase in auto sales last month while rival Ford Motor saw sales decline, as market watchers look for an industry-wide increase from September's levels, which were hurt by a Cash for Clunkers hangover.
Opel's labor force has agreed to contribute 265 million euros ($390 million) in annual savings if General Motors finally sells a majority stake in its European arm to a group led by Canada's Magna.
The United Auto Workers union had given local unions until Monday to complete voting. But a person briefed on the voting said Saturday that the contract changes have been rejected by large margins.
General Motors expects China's car market to grow over 10 percent next year even without government incentives and maintain its position as the world's top car market for a long time.
China has told the United States it is launching a trade investigation that could lead to new import duties on autos and sports utility vehicles made by Chrysler, Ford and General Motors.
Malaysia, which has to reduce tariffs on auto and parts imports as part of a deal with Asian neighbors, is scouting for a partner for national carmaker Proton as it faces increasing foreign competition.
General Motors will decide in early November whether to proceed with a deal to sell its European arm Opel to a group led by Canada's Magna or to seize a new opportunity to keep the unit.
U.S. pay czar Kenneth Feinberg Friday emphasized his ability to claw back pay at any company receiving a taxpayer bailout but said such an extreme action "will be rare and far between."
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