German Union Leader Urges GM to Sell Opel Brand in North America

Take a look at the new Saturn Sky. If you think it seems familiar, the car first appeared as Vauxhall's VX Lightning Concept, and

The new Saturn Sky is basically a production versions of Vauxhall's VX Lightning Concept. (Photo: General Motors of Canada)

comes to Saturn more or less unchanged. At the Sky's unveiling, a GM spokesman said that the Vauxhall styling cues signal "the adoption of an international design language for Saturn." What it also signals is the adoption of a combined effort between Opel/Vauxhall in Europe and Saturn in North America, to reduce the cost of developing and building new models, and therefore increase profitability.

Still, the German union leader says he wants Opel cars sold into North America. "If we really push it, we could begin selling Opel cars in the U.S. in one to two years," Franz told Reuters news service.

He added that the brand could succeed despite tough competition, by emphasizing its European design and engineering. If that were true, then Volkswagen would be doing well due to its European design and engineering, and it isn't.

"If we really push it, we could begin selling Opel cars in the U.S. in one to two years," commented Opel union boss Klaus Franz. (Photo: General Motors of Canada)

German vehicles on the whole, have been performing poorer in quality and reliability than most domestic, Japanese and Korean nameplates in independent surveys done by J.D. Powers and Associates and Consumer Reports. In some consumer's minds, therefore, Opel's German design and engineering might be a negative hurdle to overcome. Also, the high euro puts Opel at a disadvantage in North American markets.

But Franz had an answer for this too. "The negative currency effects could be largely compensated," Franz offered, stating that transfer pricing could be a means to offset the impact of the difference in exchange rates.