staff@slashgear.com (Jowi Morales)
2024-04-14 20:15:57
www.slashgear.com
Adam Opel established his namesake company in Rüsselsheim, Germany, just 30 miles southwest of Frankfurt. Founded in 1862 to make sewing machines, Opel branched into bicycle manufacturing in 1886 after securing a piece of the German market.
In 1899, Opel’s son, Wilhelm, bought Friedrich Lutzmann’s Motorwagenfabrik (motor car factory) and started building cars under the Opel name. By 1907, Opel was making sewing machines and cars alongside each other in its factory. However, a fire burned down the factory in 1911, causing the company to stop operations. When it resumed production, Opel decided to stop making sewing machines and focused all its efforts on automobiles.
By 1928, Opel was the largest German automaker, with 37.5% of the local market share, according to Detroit Free Press. However, the Great Depression in 1929 hit Opel hard, and General Motors ended up acquiring 80% of the company for under $26 million (about $472 million today). By 1931, GM bought Opel’s remaining 20% of its shares, making it a fully-owned GM subsidiary.
However, despite being a great success for GM in the 1990s, GM Europe, which had Opel under its belt, was losing about $1 billion annually in the 2010s. So, after nearly 90 years under its care, GM sold Opel (and Vauxhall) to Groupe PSA in 2017. With the latter’s merger with FCA, Opel is now under the Stellantis umbrella, putting it alongside other iconic brands such as Alfa Romeo, Jeep, and Maserati.