According to a report published by French financial publication latribune.fr on Friday, one of the options being studied by General Motors and PSA Peugeot Citroen involves folding GM’s Opel division into Peugeot. If it materializes, the deal would create an equally-held joint venture between Opel and Peugeot Citroen.
In addition, La Tribune said that the plan hasn’t been presented to Peugeot’s board and that due to differences in Opel’s valuation, GM would likely have to pay Peugeot an as of yet unspecified premium for the deal. While a decision is said to be possible by the end of the year, the report also claimed that the Peugeot family has its reservations about the tactic.
General Motors and PSA Peugeot Citroen entered into a strategic partnership earlier this year with the goal to create synergies in purchasing as well as research and development operations on new vehicles. As of this writing, the alliance has resulted in GM transfering its European logistics operations to Peugeot, while unconfirmed reports of Peugeots and Citroens being built at Opel’s plants, and vice-versa, continue. In the meantime, Opel is expanding outside its traditional European markets but remains unprofitable while its leaders search for possibly ways to cut costs.
The GM Authority Take
It would seem that General Motors is not leaving any stone unturned when it comes to the future of Opel. Last last month, GM Authority reported that studies were underway to evaluate the strength (and weakness) of the Opel brand, with the possibility of the marque being replaced entirely in certain European markets. And today’s rumor bolsters the assumption that anything is on the table when it comes to the future of Opel — with or without GM.
We’ll wait to see how this one plays out. In the meantime, stay tuned to GM Authority for the latest GM News.
Comments
It is not being looked at just one way – they are also exploring Opel taking over PSA,
but none of it looks very likely, I would imagine the German and especially the French governments would raise objections for any wholesale takeover. Also a takeover either way would not achieve very much as both companies compete directly with each other model for model. The biggest problem is overcapacity, which both Opel and Peugeot are addressing now with plant closures, the main areas of benefit would be platform sharing, parts purchasing and shared production facilities. Full merger either way – non / nein!
Unless they can shut down factories, there is nothing to be gained.
With Unions so powerful, in both Germany and France, I can’ see this happening.
What about the possibility of moving opel up to a semi premium marquee like gm is having success doing w buick here and making chevrolet the mainstream vehicle in europe building them at the german plants
That could work too. The question is whether Opel is damaged goods as a brand… damaged beyond repair (or beyond affordable repair).