GM in Talks to Sell Opel to PSA Group (the Peugeot as well as also Citroën People)
The French as well as also Germans are dancing again to an American beat, with General Motors in confirmed discussions to sell its Opel as well as also Vauxhall operations to PSA Group (the parent of Peugeot as well as also Citroën). The two corporations previously bopped to a similar beat in 2012, when merging Opel with PSA was floated as a possibility as well as also the companies planned to co-develop four vehicle platforms from the wake of heavy losses suffered by PSA (nearly $5 billion in 2012). of which same year, GM’s European arm lost a comparatively paltry $1.5 billion, although of which loss came on the back of 12—yes, 12—consecutive years of losses.
At the time, the discussions looked like they were taking place between two exhausted men in a lifeboat, each hoping the various other one was still strong enough to row. This specific’s a little different right now, which has a chunk of PSA right now owned by China’s Dongfeng as well as also the two companies sharing some development as well as also engineering projects. nevertheless the previous arrangement had somewhat unraveled by the end of 2013, as well as also much about the possible completely new deal remains odd.
For starters, nobody bothered to tell Opel’s people in Rüsselsheim or the manufacturing works council or the labor union. Unions sit on the boards of European carmakers as well as also have major controlling hands from the way things are done. As This specific happened, PSA simply punching out a statement in Paris as well as also GM following with its own is actually not the polite way of doing business in Germany.
as well as also neither PSA nor GM Europe look as if they’re ready to undergo a complicated transaction, despite what their statements may say. Opel failed to make This specific into the black again in 2016, as well as also its sales in EU countries fell to 979,427, behind the BMW Group for sixth place overall. There is actually no Chevrolet brand to back This specific up at the bottom end, with GM having pulled the bow-tie brand via Europe in 2013. Prior to of which, in fact, Opel itself had been rumored for closure.
PSA builds Citroëns, Peugeots, as well as also the DS premium brand as well as also has zero footprint from the U.S. market. This specific fell via being the EU’s second biggest carmaker in 2015 to the third biggest last year, having been overtaken by the Renault Group (as well as also only the French portion, not the Nissan or Mitsubishi bits). If This specific comes to fruition, a merger of the two operations would certainly lift the completely new group near enough to 2.5 million sales in Europe, which would certainly vault PSA back over Renault, although This specific would certainly still be a million cars behind the Volkswagen Group from the same territory.
The deal also would certainly finally stabilize GM’s cash flow out of Europe, assuming This specific retains a stake from the outfit—as well as also This specific would certainly be key if the current Buick product plan is actually to continue, since many completely new Buicks are rebadged as Opels—although the sale could be seen by some as an embarrassing admission of which GM can no longer hack This specific on the Continent. Some speculation, however, has This specific of which an Opel sale could be a precursor to a larger merger or at least financial tieup between PSA as well as also global GM, possibly from the mode of the Daimler/Renault-Nissan cooperation.
- Won’t Back Down: Sergio Marchionne Still Pushing for FCA/GM Merger
- French Press: Can Peugeot as well as also Citroën definitely Make This specific Back to America?
- French Flier: Citroën’s DS Brand More Likely for U.S. than Ever
There already are products heading for sale via the merged development programs, as well as also the Volkswagen Group (especially with its Volkswagen, SEAT, as well as also Skoda brands) has proved of which identical mechanicals are okay if the vehicles are sufficiently different visually. Besides GM’s pride, there is actually a glaring loser here: FCA. Sergio Marchionne has pushed hard at various times to merge his organization with GM before his company is actually burned by manufacturing overcapacity. as well as also of which door right now could be welded shut.