It seems as if the ball has truly begun to roll in regards to selling off General Motors’ Opel and Vauxhall subsidiaries. Reuters reports GM CEO Mary Barra made a stop in Ruesselsheim, Germany, at Opel headquarters in an attempt to clarify ongoing sale and PSA merger talks of the brand.
Both PSA and GM seem to be doing damage control with German and UK officials and employees of each brand, with many GM operations outraged over the fact they were not informed earlier of such merger talks. GM Opel employs 28,000 workers, while GM Vauxhall employs 4,500.
While Barra visited Opel itself, PSA CEO, Carlos Tavares, planned to meet with German government officials, possibly even Chancellor Angela Merkel. Germany’s labor minister also stated there were extensive talks at all levels to ensure Opel production facilities would remain open in the event of a sale and merger with PSA Group.
In other news, Wall Street reacted positively to the idea of unloading Opel and Vauxhall from GM’s portfolio of brands. GM shares climbed 4.84 percent or 1.72 points. Opel, despite high hopes, did not turn a profit in 2016. Instead, it reported a negative $200 million EBIT for the year.