Peugeot and Citroen in talks to buy Opel

15 February, 2017, 00:27 | Author: Alicia Barber
  • GM out of Europe? General Motors is reportedly in talks to sell its European brands Opel and Vauxhall to the PSA Group

By Ben LevisohnGM confirms that it is in strategic talks with PSA Group regarding potential joint actions to improve profitability, including the possible sale of Opel Vauxhall to PSA.

Concerns have been raised about Vauxhall's 35,000-strong United Kingdom workforce as General Motors (GM) considers the sale of the loss-making arm to Peugeot-owner PSA Group.

GM's Opel division also includes its British Vauxhall brand.

It added: "There can be no assurance that an agreement will be reached".

Now Tavares may be preparing to take on a new challenge by acquiring General Motors' troubled European unit.

DuPont to settle PFOA lawsuits for $670 million
The $670 million settlement amounts to approximately $191,000 per plaintiff, prior to any attorney fees or other litigation costs. DuPont and Chemours will each pay more than $335 million to settle the lawsuits, but neither company will admit any wrongdoing.

A combination between the two would have around 16% of the European auto market, and would take PSA (pugoy) above its French rival Renault (rnsdf).

Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well. Moreover, GM has already pulled the plug on the Chevrolet brand in Europe, meaning the company will essentially be abandoning the European market if it sells Opel/Vauxhall. If a deal goes ahead the enlarged business would overtake Renault to become the second-largest European carmaker, after Volkswagen.

The Detroit-based carmaker has repeatedly struggled to turn a profit on its European businesses, which has resulted in some shareholder pushback. However if a transfer of ownership occurs PSA won't be just collaborating with Opel on future products - it will be steering the ship.

PSA Group, which is part owned by the French government and Chinese firm DongFeng Motor, saw its Paris-listed shares jump 5% on news of a potential deal. Back in 2013 GM sold PSA a 7 per cent stake in Opel but further investment on behalf of the French group faltered.

Investors applauded the rekindling of the sale concept, driving GM shares up 4.3% to $37.05 in pre-market trading Tuesday.

Recommended:



Popular

Kansas State's Bill Snyder diagnosed with throat cancer, plans to continue coaching
The 77-year-old coach won't let this affect his coaching duties, and passed along a statement to the K-State faithful. The full release from Kansas State Athletics can be found here. "The doctors and staffs at both KU Med and M.D.

Amber Rose Insists Wiz Khalifa And Her Are Not Back Together
The exes weren't shy about showing off their affections for one another - holding hands, embracing, and kissing for the cameras. Well, to be fair, neither Amber or Val was talking about their split, and it's unclear who did the dumping at this point.

Heat is on China after North Korean missile test
The North tried to launch a Musudan eight times past year but most attempts failed. At the time, Mr Trump derided the claim in a tweet, saying: "It won't happen".

Noncitizen Sentenced to 8 Years for Illegal Voting
However, five months later, she filled out another form and claimed the second time that she was a citizen, the station reported . According to Fox 4 News , Ortega's identity came into question after she tried to register to vote twice in Tarrant County.

Interceptor missile tested successfully
Developed by the USA and Japan, the SM-3 Block IIA aims to tackle medium- and intermediate-range ballistic missiles. Added to them, the interceptor missiles will be a great asset towards preserving the security of the nation.