General Motors is reportedly expecting to receive a letter of intent from French automaker PSA soon regarding their purchase of Opel. This news comes appropriately quick after news first broke of acquisition talks between GM and PSA last week. Further details of the alleged deal have trickled out throughout the week, including the reported $2 billion price tag on the deal.
A GM spokesperson confirmed to AutoCar that GM is expecting the letter of intent to arrive be the end of next week. A letter of intent is generally viewed as the first formal expression of interest in an acquisition. GM says the next step will be the due diligence process, which could take up to a year.
The swiftness at which this deal has came about has alarmed some lawmakers in Europe, concerned with protecting jobs associated with both Opel and PSA. GM and PSA executives have been meeting with heads of state in Europe this week to calm fears while PSA reaffirms commitments to existing jobs across the continent.
At this time PSA is committing to maintain Opel as a separate division within its own company, specifically maintaining Opel as a German brand. What exactly PSA plans to do with Opel beyond that are still up for debate, as are several attirtubes associated how GM will handle the loss of Opel.
Nonetheless, it appears this deal is moving quickly and that Opel could be out of the GM fold in short order.