Lord Rumba's mate saves GM Europe
Discussion
I'm not sure how I feel about this one. One of Magna's principal backers is a Russian Bank controlled by Oleg (the yacht) Deripaska. The same Ruskie who entertained both Lord Rumba and Osbourne the innocent. I'm glad this deal may save some UK jobs, but wonder what the "real price" will be. Or am I just being cynical?
ianash said:
I'm not sure how I feel about this one. One of Magna's principal backers is a Russian Bank controlled by Oleg (the yacht) Deripaska. The same Ruskie who entertained both Lord Rumba and Osbourne the innocent. I'm glad this deal may save some UK jobs, but wonder what the "real price" will be. Or am I just being cynical?
[Yoda Voice]For every Master an apprentice there must be 
[/Yoda Voice] but yes its almost certain that deals are being done by the unelected member of the cabinet, on behalf of the unelected PM, the head of a government with no control or mandate.Ellesemere Port is the most efficient plant that GM own in europe, to let it close due to dodgy deals and the UK's terrible labour laws would be almost criminal and a fair indication of the true worth of our invovlement with the EU as currently operates
I pray that Deripaska isn't involved. Remember that he was behind the company that couldn't afford to find a few million to keep LDV in business.
http://www.telegraph.co.uk/news/newstopics/politic...
Suspicions are that the German government may be about to piss over £1bn down a very peculiar smelling Russian toilet.
Lets hope they get value for money and don't experience the Russian mining philosophy of business.
"I bought into a joint venture mining company with the Russians."
"Really?, what happened?"
"I lost all my money, it cost me a fortune"
"Why?"
"When we'd signed the contracts, they explained that they owned the mine and I got the shaft"
RIP Vauxhall.
http://www.telegraph.co.uk/news/newstopics/politic...
Suspicions are that the German government may be about to piss over £1bn down a very peculiar smelling Russian toilet.
Lets hope they get value for money and don't experience the Russian mining philosophy of business.
"I bought into a joint venture mining company with the Russians."
"Really?, what happened?"
"I lost all my money, it cost me a fortune"
"Why?"
"When we'd signed the contracts, they explained that they owned the mine and I got the shaft"
RIP Vauxhall.
Leaving Deripaska as an individual aside for a second, an interesting article in the Telegraph this morning
http://www.telegraph.co.uk/finance/newsbysector/tr...
Three things really stand out and ring alarm bells.
1 - "However, a decision on Vauxhall employees' future is unlikely to be made for some time, as Magna is expected to take at least two months to go through the books."
The last major corporate takeover that was pushed through with minimal due diligence for the sake of political convenience ended how? - Lloyds taking HBOS wasn't exactly healthy now, was it?
2 - "Lord Mandelson, the Business Secretary, said he had received assurances from Magna that manufacturing would continue in Britain, but he accepted that there will probably be some job losses."
Manufacturing what? - there is just no detail to be had - we are just supposed to blindly accept that everything will be fine because Mandy's on the case.
3 - Yesterday, Elena Matveyeva, the deputy chief executive of OAO GAZ, Mr Deripaska's Russian car manufacturer, said that as many as 180,000 cars a year could be produced in Russia. However, it would take six months for its factory in Nizhny Novgorod to retool."
Oh great, so the future of GM Europe revolves around people prepared to take the risk of spending their increasingly diminishing pot of cash on a product built in Russia - can you see your average German weighing up the pros and cons between BMW, Mercedes, Ford etc etc and actually choosing to purchase something from the country that has so far given us Lada and Zil as examples of automotive excellence?. I imagine the queue will be a short one.
And before anyone forms the idea that I am anti-Russian, as I've mentioned on these forums before, I was made an honorary Russian many years ago in a former life after a particularly interesting evening/night/morning drinking with several members of the Black Sea Fleet in Varna. One of the ringtones on my phone is the old Soviet National Anthem. As people I find them outstanding. But their economy and modes of doing business are frontier style at best and the system of robber barons that control finance in Russia are best avoided.
At best I think that these moves may have pushed the inevitable a little further down the road and bought GM Europe a short stay of execution. If I worked at Luton or Ellesmere I'd be doing everything I could to find a way out now before I became just one of thousands in the same boat.
http://www.telegraph.co.uk/finance/newsbysector/tr...
Three things really stand out and ring alarm bells.
1 - "However, a decision on Vauxhall employees' future is unlikely to be made for some time, as Magna is expected to take at least two months to go through the books."
The last major corporate takeover that was pushed through with minimal due diligence for the sake of political convenience ended how? - Lloyds taking HBOS wasn't exactly healthy now, was it?
2 - "Lord Mandelson, the Business Secretary, said he had received assurances from Magna that manufacturing would continue in Britain, but he accepted that there will probably be some job losses."
Manufacturing what? - there is just no detail to be had - we are just supposed to blindly accept that everything will be fine because Mandy's on the case.
3 - Yesterday, Elena Matveyeva, the deputy chief executive of OAO GAZ, Mr Deripaska's Russian car manufacturer, said that as many as 180,000 cars a year could be produced in Russia. However, it would take six months for its factory in Nizhny Novgorod to retool."
Oh great, so the future of GM Europe revolves around people prepared to take the risk of spending their increasingly diminishing pot of cash on a product built in Russia - can you see your average German weighing up the pros and cons between BMW, Mercedes, Ford etc etc and actually choosing to purchase something from the country that has so far given us Lada and Zil as examples of automotive excellence?. I imagine the queue will be a short one.
And before anyone forms the idea that I am anti-Russian, as I've mentioned on these forums before, I was made an honorary Russian many years ago in a former life after a particularly interesting evening/night/morning drinking with several members of the Black Sea Fleet in Varna. One of the ringtones on my phone is the old Soviet National Anthem. As people I find them outstanding. But their economy and modes of doing business are frontier style at best and the system of robber barons that control finance in Russia are best avoided.
At best I think that these moves may have pushed the inevitable a little further down the road and bought GM Europe a short stay of execution. If I worked at Luton or Ellesmere I'd be doing everything I could to find a way out now before I became just one of thousands in the same boat.
Edited by Durruti on Sunday 31st May 09:24
You mention Russian robber barons running their banks. Well Mandy has had some experience of dealing with these type of guy's from the inside. Deripaska and the Hinduja brothers to name the two we know about. My problem with Mandy is one of trust - who's side will he really be batting for, certainly his own. But does that bode well for those poor souls in Luton and Ellesmere Port. We know this socialist Government will do pratically anything to present good spin. There is no end to the amount of taxpayers money they might throw at this business in order to project a "success" among the ruins they have made of our economy.
Edited by ianash on Sunday 31st May 12:07
Conspiracy theory or not, it looks like GM's future in the UK is still far from being either clear or secure.
"Lord Mandelson complained yesterday that Magna had been "very vague about their job and business plans", adding that he found it surprising the unions had supported Magna's takeover of GM Europe, which includes the German Opel marque, rather than Fiat, which had been more specific about its plans.
He added: "We've got now to pin down specific plans and specific implications for jobs."
http://www.telegraph.co.uk/finance/newsbysector/tr...
The bottom line here is that only a complete idiot would be prepared to believe that it will be business as usual for Luton and Ellesmere based on the current evidence.
"Lord Mandelson complained yesterday that Magna had been "very vague about their job and business plans", adding that he found it surprising the unions had supported Magna's takeover of GM Europe, which includes the German Opel marque, rather than Fiat, which had been more specific about its plans.
He added: "We've got now to pin down specific plans and specific implications for jobs."
http://www.telegraph.co.uk/finance/newsbysector/tr...
The bottom line here is that only a complete idiot would be prepared to believe that it will be business as usual for Luton and Ellesmere based on the current evidence.
I certainly don't see how retaining two brands would make too much sense.
If I was looking at Opel/Vauxhall, the first thing I'd want to do is make it a single brand and cut the costs of having two separate operations with common products. A re-branding of Vauxhall to Opel wouldn't take too much doing.
Then you'd have to look at where your costs are in manufacturing and decide if you can be cheaper building elswhere.
I can't see a reason why some Canadians and Russians buying a business owned by a US company with German support should be sentimental about the UK?
If I was looking at Opel/Vauxhall, the first thing I'd want to do is make it a single brand and cut the costs of having two separate operations with common products. A re-branding of Vauxhall to Opel wouldn't take too much doing.
Then you'd have to look at where your costs are in manufacturing and decide if you can be cheaper building elswhere.
I can't see a reason why some Canadians and Russians buying a business owned by a US company with German support should be sentimental about the UK?
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff