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Posts Tagged ‘GM PSA Opel deal’

GM, PSA Getting Pushback on Potential Opel Deal

German, British unions and governments against the sale.

by on Feb.16, 2017

GM is re-examining its European operations, specifically, the UK, in light of the "Brexit" vote.

General Motors’ plans to sell off its money-losing Opel unit is running into political and union opposition in both Germany and Great Britain.

GM is proposing to sell Opel to the French-based PSA Group, which it is assumed will move to reduce costs, shed some of the excess capacity and move to consolidate product lines. Excess capacity has long been identified as a major problem in the European auto industry but governments and unions throughout Europe have made it extremely difficult to close plants

Global Auto News!

Germany’s federal government and influential unions, which are already facing the threat of major job losses at Volkswagen in the wake of the diesel scandal, have moved quickly to criticize the proposed GM-PSA deal. (more…)

GM Considers Sale of Struggling Opel to France’s PSA

Automaker's European unit hasn't been profitable since 1999.

by on Feb.14, 2017

Opel chief Karl-Thomas Neumann showed off the Euro version of the Bolt in Paris.

General Motors is once again considering the sale of its money-losing European operations and has entered talks with French automaker Peugeot’s parent, the PSA Group.

The automakers both announced plans to explore new “strategic initiatives” on Tuesday, those statements coming exactly a week after GM confirmed it had once again gone into the red in Europe. It has not earned a profit there since 1999, despite repeated promises to fix the problems at its Opel and Vauxhall brands.

Global News!

Noting they already have “three projects in Europe” underway, GM and PSA said they “confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA,” though the joint statement cautioned “There can be no assurance that an agreement will be reached.” (more…)