Sunday, November 8, 2009

Opel, GM and Merkel's conspiracy to dupe the Germans

Do you believe that Merkel was surprised by the GM decision not to sell Opel? Well, lets look at the facts.

Months before the election, when Opel's future was being discussed, it was obvious that the only real proposal came from Fiat. They wanted to buy Opel, cut the fat (layoff some workers) and make Opel profitable. The rise in oil price (more to come) is making Opel's cars unprofitable. For this very intransigent technical reason, Opel needs to retool and modify its labor force and reduce their cost. GM or Fiat or anyone else who buys Opel actually has little choice.

But this was very unpopular in Germany. So the negotiations continued. Magna, which is not even a car company, came up with a vague proposal, -the only important thing about the proposal was that they didn't talk about layoffs. Now lets examine the scenario for a moment.

If you are the owner of a business, -aren't you the most knowledgeable about it? If GM, the owner, says layoffs are needed, and Fiat, another real car company, says the same, then why should one believe Magna, -which is not even a car company. And Merkel is no fool, so it is unlikely she would believe Magna and not Fiat and GM.

But she knew she wouldn't win the election with layoffs in GM. So, just before the election, GM made a 'u-turn' and decided to sell Opel to Magna with no layoffs. Merkel won. And right after the election, they made a second u-turn and decided not to sell after all. Hmmm.

Merkel didn't know about it? It is more likely that she not only knows about it but also actively decided on the timing. Visualize it. She was in the US and the Americans tricked her. So blame it on the Americans. Distract the poor german people away from the truth. Take advantage of the general anti-American stance of the German people and give them something to hate.

The truth is Germany simply cannot afford to subsidize 10,000 extra workers at Opel. Oil is becoming scarcer, so car companies have to adjust. But politicians, German or otherwise, are not in the business of telling the truth!

So, Merkel duped the Germans into electing her. A very clever conspiracy indeed.

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