17.3.2004
Opel and General Motors: 75 years of strong partnership

Exactly 75 years ago, on March 17, 1929, Adam Opel AG announced in a joint press conference in Berlin that General Motors Corporation (GM) had acquired a controlling interest in the Rüsselsheim-based automobile manufacturer. This set the foundation for a very successful partnership. Today, Opel is one of the leading car brands in Europe and an important element in GM Corporation, the world's largest carmaker. Opel Chairman and Managing Director Carl-Peter Forster: "The merger in 1929 was a decision based on entrepreneurial farsightedness. History has shown that one can only achieve a leading role in the auto industry by being part of a strong international group of companies."

In Opel, GM found long-sought-after partner in Europe

GM's purchase of Adam Opel AG was the result of a favorable constellation for both parties. In the late 1920s, Opel was in need of new capital because the evolution into a modern volume manufacturer was not compatible with the structures of a family business. The necessary investments in new machines turned into an ever bigger financial challenge.

GM, on the other hand, had been looking for a strong partner in Germany for several years in order to avoid the protective duties on foreign goods and to gain a foothold in the German market. On a trip to Europe in 1928, GM chief executive Alfred P. Sloan visited the Opel plant in Rüsselsheim and was impressed. The machinery is in excellent condition, the plant highly flexible and the employees very well trained, he said. In addition, there was already an extensive dealer network with a total of 736 dealerships in Germany. In Sloan's view, Opel was thus GM's best option in Europe.

A purchase option was negotiated that same year. However, the takeover by GM was made conditional on the conversion of Opel from a limited partnership into a stock corporation. On December 3, 1928, Adam Opel AG was thus registered as a stock corporation in the Gross-Gerau district court. Following intensive negotiations on final details, Opel and GM announced on March 17, 1929 that GM had acquired an 80 percent stake in Adam Opel AG for just under $26 million. In the spring of 1931, GM bought the remaining 20 percent of shares for an additional $7.4 million.

GM's concept of decentralized corporate governance with local responsibility and maintaining the name, Opel, was important for the Opel brothers, Wilhelm and Fritz. The Opel press statement of the takeover day says: "The Opel traditions that have proved successful for generations, in combination with the financial support and the technical experience and potential of the largest U.S. automobile manufacturer, will enable Adam Opel AG to serve German car buyers and the German economy equally well."