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Renewable energy company offers to buy a piece of GM
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The auto industry may have waited too long to send out
the old and embrace the new. (Google Images)
You know times have changed when a German solar energy company is offering to throw General Motors a bone, and shell out $1.26 billion for one of its subsidiaries.
German solar powerhouse, SolarWorld (FRA:SWV) issued a press release yesterday, stating that the company plans to bid on four German production facilities and Opel's Ruesselsheim development center and headquarters. (Opel is a German automaker that was acquired by GM in 1929, and continues to operate as a subsidiary) The company wants to make this Europe's first true “green” auto company. Here's what SolarWorld representatives had to say about their plans:
“With the restructuring of the product pallet, the traditional German auto builder would offer in future especially electric and hybrid automobiles and the newest technology combining extended-range electric and combustion motors highly efficiently.”
Had GM gone this route a decade ago, perhaps they wouldn't be asking for handouts from the government today. Of course, don't expect GM to admit that one. In fact, CEO Rick Wagoner told the Senate Banking Committee yesterday that their problem does not stem from mismanagement or lack of vision on the part of the industry, but rather it is the direct result of the global financial meltdown.
Certainly this global financial meltdown has impacted every company and every sector. But to place the blame for GM's demise solely on this is nothing more than one more excuse, in a long line of excuses.
Who's been steering the ship into this iceberg? The unions? The government? The consumers?
Management always has the final say. And in the case of Detroit, there were a lot of very bad decisions made.
How visionary was it for GM to kill its electric vehicle, the EV1, almost a decade ago?
Had they moved forward with a strong electric vehicle product line, instead of fighting the integration of more fuel-efficient vehicles – which is exactly what they, and all the other major automakers did when they manipulated the original Zero Emissions Vehicle mandate in California with the help of some very pricey lawyers – then maybe they would've at least had a car to sell people who don't want to drive a 17 mpg tank within the city limits.
Is it any wonder that so many people don't seem to be too interested in forking over $25 billion to “save” these guys?
For the sake of millions of jobs, I hope Detroit can dig itself out of this mess. But if it can't, don't be surprised to see a conga line of new, innovative, and technologically-superior companies offering to buy Detroit, piece by piece.
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