General Motors CEO Mary Barra confirmed the company is exploring opportunities for its Opel division and French automaker PSA. In speaking at the Economic Club of Washington today, Barra stopped short of admitting discussions of a potential acquisition of Opel by PSA.
“We’ve done a lot to improve the business but we’re exploring opportunities to see if we can accelerate that even more because scale does matter in this business,” she said. “We’re continuing the dialogue.”
Barra’s remark is vague, at best. While not uncommon during acquisition discussions, her comment regarding scale is a bit of a head-scratcher. GM isn’t likely to gain any scale benefits from selling Opel, whereas PSA potentially will gain some scale factor by becoming the second largest manufacturer in Europe.
GM is also treading lightly on providing a timetable for when a deal could be finalized with PSA. Reports out of Europe are suggesting the two companies could have an acquisition deal in place as early as next week.
News of the talks broke back on February 14th, when both GM and PSA confirmed the talks.