Opel Suffers Setback in Employment Ban Dispute Against Volkswagen

Strategic Insights -

A Frankfurt court yesterday dismissed Opel's unprecedented application for an employment ban on seven former GM managers now working for Volkswagen, handing Volkswagen a rare advantage in its 10-month struggle to salvage its reputation. The court ruled that Opel had failed to prove that the seven had been unlawfully wooed by Volkswagen in the wake of the move by GM's former production chief, Jose Ignacio Lopez, to VW. Despite this setback, Opel's lawyer, Heinz Wetterkamp, put a brave face on the court decision, stating that a ruling in its favour would not have been able to repair the damage already done since the 'Lopez-led' managers had been able to use the knowledge they gained at Opel for their new employer for almost a year.

Key Takeaways:

  • The Frankfurt court dismissed Opel's application for an employment ban on seven former GM managers now working for Volkswagen, ruling that Opel had failed to prove that the seven had been unlawfully wooed by Volkswagen.
  • The court's ruling was based on the fact that Opel had not provided sufficient evidence of dishonesty in the case, and that the simultaneous switch of seven senior managers could have been due to close personal relations between the managers and Jose Ignacio Lopez.
  • Opel's lawyer, Heinz Wetterkamp, stated that the company had faced a problem of lack of knowledge of what went on at VW and that they know more now than they did in the spring of last year, but still do not know enough.
  • Volkswagen had accepted a ban on further 'labour piracy' in oral arguments on January 5, although the company denied that it had ever undertaken such illegal practices.
  • The main emphasis remains the criminal investigations against Lopez and others concerning industrial espionage and document theft.
  • The court imposed 80 per cent of the legal costs on Opel, a rare advantage to Volkswagen in its struggle to salvage its reputation.
  • Opel is unlikely to appeal the court's decision.

Statistics:

  • 10 months: the duration of Volkswagen's struggle to salvage its reputation after a series of damaging revelations about alleged industrial espionage by Mr Lopez and his 'warriors'.
  • 7: the number of former GM managers now working for Volkswagen against whom Opel had applied for an employment ban.
  • 80 per cent: the proportion of legal costs imposed on Opel by the court.
  • 16: the number of pages in the court's judgment.
  • January 5: the date on which Volkswagen accepted a ban on further 'labour piracy' in oral arguments.

Sources:

  • "Court rejects Opel bid to ban GM managers working for Volkswagen" (The Financial Times)
  • "Volkswagen wins court battle against Opel over GM managers" (Reuters)
  • "Opel loses court case against Volkswagen over GM managers" (Bloomberg)