Opel’s rescue: strategy or emotion?

In spite of all of the articles that have appeared recently from politicians, advisors and scientists on the post-capitalistic society, our old behavior still dominates, Prof. Dr. Taco van Someren, professor of sustainability and strategic innovation at Nyenrode’s Center for Sustainability, believes. "We have obviously still failed to learn anything from the crisis. Every right-minded analyst is urging us to think more, and be less bent on short-term profits and actions. Unfortunately, the dramatic events in the German automotive industry have shown that we have still not learned a thing. Are greed, short-term gains, power and emotion once again playing a starring role for the parties involved? Everything would seem to indicate that this is the case."

Social policies
Van Someren: "The dilemma of saving jobs versus handling enormous amounts of tax money wisely and in a risk-conscious manner has, in Opel’s case, once again been decided in favor of the short-lived retention of jobs. Especially when it comes to the government. During the post-war Soziale Marktwirtschaft (social market economy) in Germany, social policies won out over wise market thinking, at the taxpayer’s expense. Rationality and emotions of coming elections fight for priority. This will not work: election money cannot win from strategic innovations by clever entrepreneurs."

From supplier to Original Equipment Manufacturer
Magna is a supplier to various OEMs (Original Equipment Manufacturers) such as BMW and GM, he explains. "With the absorption of Opel, Magna is now itself an OEM, and the question is how the other car manufacturers feel about this radical metamorphosis. Does Magna have the knowledge, experience and staff to successfully make the switch to being an OEM? And why does it want to take this step? Was it a windfall that Frank Stronach, Austrian by birth, just couldn’t afford to pass up, even if it was merely to show the world that Germany’s tiny neighbor was capable of more? Or did the desire to also become an OEM instead of simply a sub-contractor to the major players overcome the more realistic ‘every man to his trade’ creed? These actions would seem to indicate that Stronach’s indisputable business instinct and excellent entrepreneurial qualities are being overshadowed by emotions and ambitions for international power."

Putin
Van Someren: "One salient detail in the way Magna’s takeover of Opel is currently structured, is actually that Stronach, with his relatively small share, is a junior partner of the Russians. Prime Minister Vladimir Putin, followed by Sberbank and car manufacturer GAZ, has seized this exceptional opportunity and purchased patents and technical know-how from Opel for a song. A matter of smart business one may find little fault with, but which gives food for thought. What kind of power game is being played here? Building cars efficiently for others is a true art, but combining car manufacturing with politics is another matter entirely. Or could it be a strategic stroke of genius, spawned from relentless entrepreneurial drive for more and the dream to conquer the growing Russian market? It is still too early to judge."

China
Also Chinese car manufacturer BAIC showed its interest in Opel. In the strict interpretation of deal with GM and Magna, Opel is not allowed to enter the Chinese market. But, when pressure gets higher, everything gets fluid and in the long run we are all dead. Without any definite deal, BAIC should not be written off as a major partner.

In spite of all the positive speculations
Despite all of the encouraging speculations on future society, Van Someren concludes, age-old human behavior continues to dominate: emotion and reason alternate with each other, as do prosperity and crisis. Therefore, the best way is not to try to create ‘the ideal human being’ but to go forward and create new businesses and innovations despite  all its shortcomings.

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