The Auto Writer

It has been a particularly dire year for GM as the company found itself on the edge of ruin time and again. A massive federal taxpayer bail out exceeding $50 billion dollars along with the wholesale restructuring of its business has brought GM back from the brink at least for now. Oh, don’t forget the automaker’s huge success in China a booming market which may help once again catapult the company past Toyota as the new No.1 car manufacturer in the world.

Opel Stays

As if this story isn’t dramatic enough – Hummer and Saab are being sold while Pontiac and Saturn face closure — GM has suddenly reversed course and decided to keep its Opel unit, its principal European brand. That move comes as the automaker admits two things: 1) the attempted sale of Opel to Magna International and a Russian enterprise has been a huge headache; and 2) the company’s US commercial activity now appears to have been stabilized allowing GM to focus its attention on other markets.

Behind the scenes – but certainly not acting invisibly – German Chancellor Angela Merkel had been working to finalize the sale of Opel, promising to extend billions of dollars in loans to the company in a bid to preserve jobs in her country. That move set off a battle in other European countries where Opel/Vauxhall plants are located since it appeared likely that some of those factories would be closed down as the new owners realigned production capacity with customer demand.

The European Union eventually stepped in, effectively requiring Germany to state that funding for Opel would have been provided regardless of who bought the company. In the meantime, GM renegotiated the deal to retain a 35% stake in Opel, signaling that it wasn’t about to let go of the company entirely.

Global Sales

Even as its US operations have been in shambles, GM has enjoyed unparalleled success in China which suddenly became GM’s largest market this past summer, with more cars sold there than in the US. Sales in other markets including Asia, Australia and most of the rest of the Americas have also held up, demonstrating to GM management that better days are on the horizon.

Perhaps coincidentally, GM also realized a month over month sales gain for its US operation in October 2009. Sales climbed by 4.7%, representing the first monthly increase since January 2008. True, October 2008 was the first full month of car sales following the stock market collapse of mid-September 2008, but GM did manage to improve its position by beating out key rivals including Ford, Chrysler, Toyota and Honda.

Story Unfolds

We’ll probably get a clearer picture of where GM is headed in the coming weeks, if not days as the company details its strategy. Might the Opel reversal translate into a stay of execution for Pontiac or Saturn? That’s doubtful, because it appears GM is holding onto those brands it really wants to nurture as it surveys the rapidly changing global market and plans its business strategy accordingly.