Wall Street reacted positively to news that General Motors is considering selling its European division, Opel. During day trading on Tuesday, February 14, 2017, GM shares spiked 4.84 percent or 1.72 points to $32.24 per share.
Opel has not turned a profit in well over a decade, reporting during most of those years. Despite a significant amount of attention to bring the division into the black since 2013, Opel lost money last year — reporting a negative $200 million EBIT (Earnings Before Interest and Tax) for the 2016 calendar year.
The buyer for the Europe-wide Opel and U.K.-only sister brand, Vauxhall, is none other than French automaker PSA Peugeot Citroen with whom GM has a partnership co-developing certain vehicles for the European market. If The General can rid itself of the loss-making Opel-Vauxhall as well as its costly manufacturing structure across Europe, then it will likely compete in Europe with its Chevrolet brand, a move that would once again make the Bowtie a global marque.