Hot off the presses, folks! On November 19, a German-based solar photovolatic (PV) solar cell company, SolarWorld, announced its intention to take over German GM factories in the U.S. automaker’s “Opel” unit. What are the reasons behind a solar power company’s acquisition of a piece of the ailing American car company? This is truly stunning news in a world in which nothing seems out of the realm of possibility as the economy spirals downward.
Opel has claimed to be “Europe’s first green automobile maker.” Its focus has been on creating low-emissions, fuel-effficient vehicles. Earlier this week, Opel announced that it needed $1.25 billion from the German government, in large part due to the dire situation of its parent company, General Motors (GM). In stepped SolarWorld with a takeover plan. SolarWorld has asked GM to give it Opel’s four German factories, its German research center, the Opel brand and $1.25 billion dollars. In return, SolarWorld, Germany’s third largest solar company promises to invest $350 million cash in the takeover and raise $947.4 million in bank loans. In short, there would be a complete separation of Opel from GM if the deal goes through.
With SolarWorld in charge, will we be seeing cars with solar panels installed? Not so fast…. there is much to be worked out. Forbes Magazine speculates that:
“Chances are GM will reject SolarWorld‘s offer.”
Why would they? GM Chief Executive Rick Wagoner, has been begging for aid from the U.S. government in the midst of what the company has called the worst auto market since 1945. He told a congressional panel on Tuesday this week that the American economy would suffer “catastrophic collapse” if domestic automakers fail.
A 2007 Opel Car
I am all for it! Personally, I think GM would be foolish not to accept the deal offered by SolarWorld. Moreover, it appears that the Opel subsidiary would be in good hands. This would not be SolarWorld‘s first foray into new markets. Just two years ago, SolarWorld shocked investors by taking over the solar activities of Royal Dutch Shell, which it says have now become profitable.
Of course, making cars may be a bit more of a stretch for SolarWorld than reorganizing the solar activities of Shell. Still, it is worth noting that SolarWorld has been working for years in developing technology for solar-powered vehicles, so powerful that they could even “participate successfully in motor racing,” according to SolarWorld’s CEO, Frank Asbeck.
Any way you slice it, things are about to get even more interesting in the global economy. Who thought we would see the day when a solar power company makes a serious takeover play for part of the big three automakers? Analysts in Europe are encouraging investment in SolarWorld stock. As one noted yesterday:
“The most political of solar company CEOs is trying to send a message to politicians that if they bail out the carmakers, then something has to change.”
I think GM… and the rest of the world…. should go along for the exciting ride!
Tags: GM, Opel, solar-powered vehicles, solarworld, solarworld takeover
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