GM Europe, Peugeot Preparing To Merge?
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We’re well aware of the reported troubles of GM Europe. Though Opel and Vauxhall are not the only brands struggling in the Old World. French automaker PSA Peugeot Citroën has been having its fair share of struggles as well, as the company announced 6,000 job cuts late last year (just in time for the holidays) and the sudden stoppage of their Le Mans racing program.
With all of the adversity in mind, Automotive News is reporting that a pair of European news outlets, France’s La Tribune and England’s The Financial Times, insist that General Motors and PSA Peugeot Citroën are “in advanced talks about an alliance.”
Can new negatives make a positive, as taught in middle school math class? We might hear an announcement at the Geneva Motor Show next month. And to all of our European readers, would this merger make sense to you?
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This to me is about technology, and platform sharing… Sounds good to me…
Not European, but I dont see anything that they could do together that they would not be able to do alone(especially GM). The articles also says that no shares will be changing hands, so I dont see whats in it for GM, if they hadnt said that than I would think that GM, the one in the much stronger financial position(what a difference 3 years make) would maybe take a 30% stake and they would team up. But if thats not the case than the any deal wouldnt make sense. Peugeot needs cash, GM really doesnt. Peugot doesnt really have any advanced technology they could give to GM for compensation(like Mazda’s Skyactive or Toyota’s hybrid system).
I think this is just another rumor or some ongoing talks that will lead to nothing substantial.
And if im not mistaken dont Opel and Peugot(I can never spell that right!) compete in many segments.
Baberdher, you make good points…
Bad idea !!!!! This makes no sense at all. I must agree with “Babersher”.
I think the bigger question is why Opel is having financial problems. Is it because their costs are too high/volume too low? Or is it purely an accounting “dump” — where GM Europe does the development and engineering of vehicles that are sold in global markets that other brands (Buick) isn’t charged for?
I think think development costs should be tacked together either of the following two ways.
1. If lets GMC, Opel. and Holden are sharing a car, whether its rebadging or platform sharing, then split the development costs of that specific platform by three, tacking each part to GMC, Opel, and Holden. So lets say a platform cost 100 million, then they would each get charged 33 million respectivily.
2. Do it by volume.Lets use the same example as above with the platform costing 100 million. The platform in question supposedly sold 500k units total. If Opel sold 300k of those units, then it would get charged 60 million. If Holden sold 100k than it would get charged 20 million, and so on.
I think either of those ways would give a more accurate picture of how much each brand’s expenses and profits are. And when this method is applied than I dont think GM Europe would be in the red and would rather be posting a small profit, and NA’s profit would probably be a bit smaller and more realistic.
Is this more about merging, killing off brands and having one central euro brand for say just Peuguet… Otherwise this makes no sense, way to much overlap. At the end of the day Europe has to many brands, God forbid the Chinese come in…
GM got rid of Saturn and Saab so it needs a new money pit.
GM should just try and improve on its efficiency, to reduce cost per unit and look to gain market share by just inroducing more exciting vehicles like the new Astra. Believe me it can work, but not necessarily a merger with Peugot. As I said before, GM Europe is GM’s development hub, so all thy need to do is keep development on stream chage the marketing strtegy and renovate those plants that are central to manufacturing.
GM is the largest auto manufacturer in the world… which doesn’t make them the most efficient, of course. But I have to wonder if there’s any efficiency left to be effectively squeezed out of those plants.
Perhaps the focus should be on cost, as seems to be the case given negotiations with EU legislators.
Not buying Fiat cost $2 billion . Opel and vaxhall are losing money. Peugeot no run away fast. If you want another company look in china or india.
GMs European arm is its development hub for vehicles destined for the US and China GMs bread-baskets (markets)
. I don’t have a crystal ball, but GM should fully modernize its European plants. Closed down inefficient manufacturing plants, and continue to improve on product reliability ( use competitor suppliers) and Keep bringing fantastic designs like the new Astra in order to gain more Market share from the likes of Toyota and Hyundai.