autoevolution
 

PSA Groupe Is Close To Making A Deal With GM To Buy Opel, Sources Say

The reported deal between PSA Groupe and General Motors regarding the acquisition of Opel is close to an agreement, which sources claim that it could happen as early as next week.
Opel Monza Concept 1 photo
Photo: Opel
You might know that General Motors’ sole active brands in the European Union are Opel and Vauxhall, and the French conglomerate could end up becoming the continent’s second-biggest automaker if the deal to buy them gets approved.

GM used to have a bigger presence in Europe, but Chevrolet has retired from this market in late 2015, which would mean that the American corporation will exit the Old Continent through the alleged deal.

Multiple reports claim that GM and PSA are in intense negotiations regarding the potential sale of Opel/Vauxhall to PSA Groupe, and some of those unnamed sources claim that an agreement could get signed over the weekend.

The agreement we are referring would be, most likely, a memorandum of understanding, as lawyers call these, because drafting up a contract to sell a corporation as big as General Motors’ European branch is not that quick.

While General Motors’ European spokespersons have refused to comment further than the existence of these discussions, PSA Groupe representatives confirmed that its officials are discussing with their homologs at GM, but refrained from offering additional details.

As Automotive News reports, sources claim that one of the current disagreements in the negotiation targets the pension program for Opel and Vauxhall retirees in Europe. It is allegedly underfunded by about $9 billion, and Peugeot-Citroen would not like to take full responsibility for it, while GM also wants to avoid extra costs.

If you are wondering what can Peugeot-Citroen obtain from this deal, on top of Opel and Vauxhall, industry experts claim that the French group could save about two billion euros.

The savings would be enhanced over the years with group synergies, as their rivals at the Renault-Nissan Alliance describe them, which come in the form of joint purchasing, sharing parts, and reducing overhead costs.

All of these also bring the benefit of enhancing their dealer networks, logistics network, and managing production facilities for maximum efficiency.

General Motors’ European branch already had a deal with the French at Groupe PSA, which was supposed to have a greater collaboration than the one that eventually took place, so both firms were familiar to some extent with each other.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Sebastian Toma
Sebastian Toma profile photo

Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories