PSA Group, comprised of Peugeot, Citroen and DS, is reportedly deep in discussion with General Motors to purchase the U.S. automaker’s Opel brand, according to a new report from Reuters.
The French automaker confirmed the news Tuesday morning stating it is “exploring a number of strategic initiatives with GM with the aim of increasing its profitability and operating efficiency, including a potential acquisition of Opel.” Sources have said the discussions have reached a more “advanced” stage.
General Motors and PSA previously tied up in a strategic alliance to produce Opel and PSA vehicles, as seen in the 2018 Opel Crossland X and upcoming Opel Grandland X. However, GM largely pulled out of the alliance in 2013 by selling off its stake in PSA.
Neither Opel, Peugeot or the French government were available to comment on the potential acquisition of the GM brand.
Opel has struggled to turn a profit for years and most recently felt setbacks following Britain’s vote to exit the European Union, despite launching all-new product and increasing market share.
General Motors would reportedly hold a stake in the combined entity if a deal does, in fact, come to fruition.
At a time of year when luxury car ATP usually rises.
Sales decreased 5.6 percent to 16,670 units during the first ten months of 2024.
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Scheduled for a Spring 2025 launch.
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Don't do it. Opel has become too connected to the rest of the GM portfolio, particularly with the all new Insignia/Commodore/Regal. GM can make Opel profitable by continuing this pattern of aligning vehicles from Opel, Holden, and Buick. They all serve a similar market in their respective regions, and the similar design language works on all the brands. Economies of scale can be achieved across the brands. Furthermore, GM would be put further back in the global sales race behind Volkswagen and Toyota.
Wow. That came out of left field. That raises so many questions outside of Europe.
What will it mean for Buick? Even with Buick's China success I think Opel is the engineering brains behind most of Buick's lineup.
What will it mean for Chevrolet? Would GM try to re-enter European market at some point? That would be such a monumental task with no dealer network, but I can't believe GM would just walk out of European market.
What will it mean for Holden? Most of their lineup was going to be Opel sourced.
Did we all missed a writing on the wall somewhere? Why abandon Opel/Vauxhall and Europe now after putting so much effort to fix it? I don't believe Britain leaving EU is the reason even though it pushed their efforts back couple years back.
Greg,
I'm as shocked as any commenter here. The only "writing" I can possibly understand is the fact Holden seems to be relying more on Chevrolets and GMCs than Opels, per recent announcements. Equinox, Acadia, Cruze sedan are just a few.
It may be an early pivot to align Holden with Chevrolet, rather than Opel. However, it's all still too early. The news does ask more questions than provide answers, though.
Cheers,
-Sean
Maaaate! This Insignia Commodore is front wheel drive ugly, it will go the way of the late 1990's Ford Taurus ovoid which tanked so bad they had to cancel the second model year and still some never sold.
lmao and Ford Mondeo/Fusion looks good mate?
Let me hear again what a great CEO Barra is. Opel and GM go so far back, what kind of business case is this? And if Opel would go where dose this leave Holden and Vauxhall? I don't pretend to understand the business and do not know the reasoning behind these talks. Hopfully ( MBM)Mary Barra Motors will change its mind on this.
Very true Greg, Opel today is the only wire that connect GM to European Market and will help to company to sell the future Cadillac's in his Opel dealers.
Also GM had a error taking out the Daewoo/Chevrolet Europe, this has another error more great yet.
Isn't PSA loosing millions, so how can they afford to do this. Also Peugoet & Citroen sell similar cars & although the Vauxhall & Opel are more upmarket all four brands would be competing in a similar market against each other. Big cars would be non existent because the French cannot make a big car so we'd end up with small cars, SUVs & van based MPV's (basically no choice). Not a fan of French cars, yet they exist as cheap transport for those that are / or have no interest in cars. GM has a lot to loose in this, please let it be a April fools come early :-(
Soooo, this would essentially remove GM from Europe. Even with Holden and Vauxhall still there. Then with all the platform and engine sharing, it's like trying to remove your entire vascular system. Idk though. Seems like the billions GM would spend in new products wouldn't be justified by the hundred million they might get for the sale.
Gm sell opel and peace. To different car world not coporate easly. Holden and gm coporate
Merger Gm-opel/PSA talks.
People here forum dont know psa history and cars
What is the higher tier PSA brand? Citroen?
To gain a foothold in Europe, Cadillac needs to piggyback on top of another brand. Saab would have been ideal for that in the past.
An idea would be in the U.S., Caddy dealers sell a 'Mini' brand, so their small cars avoid criticism. And the highest PSA brand goes upmarket and introduces the best Caddy models.
Any way this goes. I'm guessing the German unions are in for some pain.
I work for a car hire company and drive these cars on a daily basis. PSA puts out complete garbage compared to GM.
Don't know psa history & cars, peugoet purchased Citroen back in 70's, back then Citroen being more upmarket brand. Now they've pushed Citroen downmarket with Peugeot not moving anywhere (hence now Citroen budget brand, Peugoet middle of the range), any buy out / merger would be bad for GM because Peugoet would want to push Vauxhall/Opel below Peugoet (something it has never been), also quality one of Vauxhall/Opel's strong points would suffer badly under PSA. It has to be said Vauxhall, Opel & Holden do well producing competitive class leading & class challenging honours cars within their ranges.
"People here forum don't know PSA history and cars"
What are you talking about? Peugeot hasn't made a solid built car since the 404 and everything Citroen make has been junk since the original DS in the 1950s.
Stop talking out of your arse and go and annoy another message board
Some sort of a joint venture. GM will still maintain it's manufacturing status in Europe.
PSA will gain additional access to GM products, but PSA will market both PSA and GM brands in Europe.
Don't know, but GM now has great design and manufacturing capabilities.