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Breaking: PSA Group Board Approves Opel Acquisition

Breaking: PSA Group Board Approves Opel Acquisition

Reports are coming out of Paris that PSA Group’s board of directors has approved its planned acquisition of Opel from General Motors. The reports alleged that the PSA board met Friday and authorized managed to finish the deal, according to Reuters

PSA Group, the parent company of brands Peugeot and Citroen, plans to formally announce the deal early on Monday. Thus far both PSA Group and General Motors are declining to comment on the matter, but it is known that Opel has scheduled a town hall meeting with employees slated for 9:45 a.m. Monday.

General Motors and PSA Group have been in strategic discussions for some time regarding the potential acquisition of their money-loosing Opel division. Both automakers confirmed the talks last month and have remained fairly mum on the subject as talks have allegedly advanced.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. Tone
    Dequindre
    I think this will be good for GM. The European marketed isn't expected to grow in the foreseeable future, so why would GM keep Opel around?


    I think that's part of the issue. The other is that Opel has been a money loser for so long -- and without growth seems to have little chance of becoming sustainably profitable under GM. The EU has free trade agreements in place with Mexico and Canada and one that could be approved by the US (as unlikely as it seems). If I were running GM, looking at the US political winds that might make it harder to import from Canada and Mexico to the US market, I might consider shifting those factories production to service whatever EU marketshare I could address profitably. It will very likely be much less than what Opel does today, but with potentially way, way less overhead costs. Plus, it assures the Canadian and Mexican plants have some production -- even if less (or none) of it is US bound -- which allows GM to not go through costly plant shut downs.

    That's my WAG; we'll see what actually happens.
    Dequindre
    I think this will be good for GM. The European marketed isn't expected to grow in the foreseeable future, so why would GM keep Opel around?
    nsaporito
    Press conference has been scheduled for Monday.
    0fxxk0
    Bye Felicia!
    arutherford
    GM might as well sell everything besides NA and China. It seems to be all they are interested in.
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