As unconfirmed reports continue to confirm that French carmaker PSA Group has agreed to purchase General Motors’ Opel division, some interesting details regarding negotiations between the two automakers have come to light.
Specifically, the automakers contended differences regarding $10 billion in Opel pension liabilities and GM’s demand that a PSA-owned Opel not compete with Chevrolet in China and other international markets.
According to unnamed sources speaking with Reuters, the issues surrounding the non-compete agreement were settled when GM agreed to pay “substantially more” into the pensions than the $1 billion to $2 billion it had initially offered. Reuters’ sources declined to give any further details.
It is believed that PSA’s purchase of Opel will officially be announced on Monday, at which point we expect to learn more about the transaction. Opel includes U.K.-only sister brand Vauxhall has been unprofitable for the past 16 years under General Motors. GM and PSA initially confirmed that they were negotiating a deal on February 14.