Sold! GM Offloads Opel onto PSA Peugeot Citroen
General Motors has officially agreed to sell its Opel in addition to also Vauxhall brands to the PSA Group as the Detroit automaker attempts to stanch more than a decade of staggering losses in Europe.
According to a report by Reuters, the PSA Group (Peugeot in addition to also Citroën) approved the deal Friday, weeks after admitting the idea was seeking to buy the German in addition to also British brands that will GM has owned for 86 in addition to also 91 years, respectively. The two companies are required to announce the deal on Monday, Reuters said, in addition to also have resolved their competitive issues in China in addition to also the problem of Opel’s billions in pension liabilities.
the idea can be unclear whether the sale indicates GM would likely essentially give up the Europe market. GM Europe, primarily the Opel in addition to also Vauxhall brands, has lost money for 16 consecutive years. Cadillac has close to zero market share there, in addition to also as of last year Chevrolet no longer sells any cars in Europe aside through the Corvette. Whether GM sells the Opel Vauxhall entirely (as Ford sold 100 percent of Jaguar in addition to also Land Rover to Tata) or completes a merger that will would likely let the idea retain a stake in PSA, the two former GM brands will inevitably face aggressive cost-cutting measures that will will further shed jobs, close factories, in addition to also shrink product lineups.
In March 2012, GM took a 7 percent stake in PSA, in addition to also the two automakers continued to share product development even after GM announced the idea was selling that will stake in December 2013.
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GM took full control of Vauxhall in 1925. Save for World War II when the German government seized control, Opel has been continuously owned by GM since 1931. Recently, Opel has been a key source of types for Buick; the idea’s unclear whether that will arrangement will continue.