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.