General Motors and France’s PSA Group are racing to close the sale of the U.S. maker’s Opel unit, possibly before the opening of the Geneva Motor Show next week, according to various sources and European news reports.
The move, if it can be completed, would transform a revitalized PSA – parent of the Peugeot and Citroen brands – into the Continent’s second-largest automaker behind Volkswagen Group. For GM, it would allow the maker to walk away from a long-troubled unit that hasn’t posted a profit since 1999, despite repeated turnaround efforts.
GM CEO Mary Barra said virtually nothing about the status of the negotiations during an appearance in Washington, D.C. earlier this week, and neither company has been willing to discuss the talks since then. But a meeting between PSA management and European labor officials is scheduled for next week, according to a Bloomberg report, a strong hint that negotiators are optimistic about clinching an agreement by then. (more…)