I spent much of the Geneva show chasing and talking to bosses of PSA (Peugeot, Citroen and DS) and Opel (Opel and Vauxhall) about Global GM’s decision to sell Opel, and PSA’s decision to buy it. I’m still not confident the takeover will do any of the participants any good. It has risks for PSA. It could be traumatic for Opel Vauxhall. And even GM, the company selling Opel and Vauxhall, might be wounding itself.
After a French conglomerate bought GM's Opel this week to become the second-largest carmaker in Europe, it could be a sign of more tie-ups.
General Motors on Monday said it had agreed to sell its European operations, taking a charge of at least $4 billion, as the U.S.'s biggest auto maker withdraws from a region where it hasn't made money for almost two decades. Peugeot SA will pay EUR1.32 billion ($1.4 billion) for GM's Opel and Vauxhall brands, the companies said Monday, consisting of EUR650 million in cash and the rest in Peugeot share warrants. GM's financial operations in Europe will be jointly acquired by Peugeot and BNP Paribas SA for about EUR900 million.
The auto industry is facing seismic changes with the rise of electric vehicles, automated driving and car sharing set to eclipse even big mergers such as PSA's purchase of Opel, executives at the Geneva auto show said.
After bringing several popular Opel designs to the U.S., Buick can't afford to just ignore European trends.
Walk around the Cheshire town of Ellesmere Port and it is hard to find a person who does not know someone who has worked for Vauxhall. All seem unsurprised by Monday’s announcement that PSA Group is to buy the company.
At the Geneva International Motor Show, Opel CEO Karl-Thomas Neumann first had to introduce his new boss, who heads French car maker PSA. From now on the French hold the reins. They decide which models have a future.
PSA Group boss Carlos Tavares has declared Opel will continue to sell vehicles to Holden as long as the General Motors division wants to buy them. He also confirmed the current Opel product plan for the next five to six years won’t be cut but may be added to by PSA Group, meaning that additional models Holden had lined up for import in the next few years would likely still be available.
Karl-Thomas Neumann says 'no limitations' on a return to the huge Chinese market - but profitability in Europe has to come first.
General Motors is selling its European Opel and Vauxhall divisions to France’s PSA Group, which currently produces Peugeot and Citroën. It’s a blockbuster deal worth US$2.