Opel’s European works council — the organization responsible for labor relations and negations for GM’s Opel-Vauxhall unit — has agreed to open a line of communication with its counterpart at the PSA Group, as the French automaker continues to negotiate with General Motors to buy out its European Opel division.
General Motors has been in advanced stages of negations to sell its European operations to PSA. Informally known as Opel, the unit consists of the Opel brand, which is sold all over Europe except for the United Kingdom, as well as the British Vauxhall brand, which is sold exclusively in the U.K. The two firms are reportedly looking to finalize negations by March 1, prior to the start of the 2017 Geneva International Auto Show.
A February 14 confirmation by GM and PSA of the ongoing discussions gave rise to fears in Germany and Britain that the proposed transaction will cause job losses, as PSA Group will likely cut costs by closing some Opel and/or Vauxhall plants given a successful transaction.
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