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.
Specifically critical minerals supply chain development.
Scheduled for a Spring 2025 launch.
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Finally, I expect this move by GM for so long.
I am convinced that if he can sell Opel and Vauxhall to PSA Group, GM will have more platforms and technologies to deploy the Cadillac, Buick and Chevrolet.
Chevrolet to use as a generalist brand, Buick and Cadillac as premium brands.
I think GM should enter only Cadillac as a luxury brand for the European market, will remove many customers in BMW, Audi, Mercedes, Lexus, Jaguar.
This only works if GM and PSA go into a Renault-Nissan style alliance with Opel as the link.
PSA has had a amazing turn around. Such a move would elevate GM to global number one while boosting platforms via scale.
There is a clear theme emerging here - that GM's European 'problem' is not poor design or poor marketing. It is quite simply the high cost of making cars in Germany. The answers are clear - retain the European design centre in Germany (with increasing input from Britain where there is a growing body of JLR trained designers who, along with those specialists at the likes of GKN are a powerful resource, could add real value) but reduce the manufacturing in Germany on favour of Britain and Poland. Interesting that the Astra (British and Polish) is scoring much higher on the quality charts than the Insignia (German)...
Do not forget that PSA is 14% owned by the French government so politics will override good business and engineering sense if Mary 'Wall Street slicker' Barra gets her way and flogs Opel-Vauxhall to the French. The British end will be closed immediately and the German end run down in favour of France.
For the whole of GM, it needs to get shot as fast as possible of Mary Barra and her ilk. What GM needs is the kind of long-sighted, financially astute by engineering savvy type of leadership that Mercedes, Toyota and BMW have had (albeit with one or two rough patches). If Barra remains, GM will shrink to a US/China operation bereft of global skills and then be taken over by someone or other. As happened to shrunken Chrysler...
Why is it that GM is rumored to sell Opel for only 1 Billion when they paid Fiat 2 Billion to get out of not buying them? Sounds like a bad business deal to me.
The ever shrinking, poorly managed GM.
Opel-PSA has had a amazing turn around. Such a move would elevate GM to global number one while boosting platforms via scale.
Not sure how the success of Opel- PSA will elevate GM to global number one.
PSA would serve as GM's European division while the reforms of Carlos Taveres would ideally influence The General's global operations leading to higher margins due to better plant utilization and less mechanical redundancy.
Any GM-PSA would end up as a reverse merger with PSA taking over leadership. If a merger happened PSA, then it like Renault, would stick to its historic markets while riding on its unique low cost platforms reducing scale. Nonetheless it would be a wise deal making GM a brand champ in the world's two most profitable markets not to mention dominance in Latam.