Opel/Vauxhall: why the new crisis?

Jay Nagley

The rumours that GM in Detroit is ordering massive cutbacks at subsidiary Opel/Vauxhall seem odd at first glance. Back in 2009, when GM went bust, it tried to offload Opel/Vauxhall to a parts manufacturer called Magna – a Canadian/Austrian company with finance from Russia.

At the last moment, GM changed its mind and decided to keep its European subsidiary in order to maintain its status as a global car company. The idea was that Opel would be restructured (Vauxhall was already pretty lean in manufacturing terms) and good new models would boost sales.