New reports circulating in the German media have suggested that the total purchase price to be paid by the PSA Group in acquiring GM’s Opel division will be difficult to determine for outsiders.
The aggregate amount paid by PSA will not be easy to calculate since it will be made up of three parts:
- Core purchase amount: the one-time amount paid by PSA Group up front to General Motors for physical assets such as plants and intangible assets like the Opel-Vauxhall brands
- Licensing fees: ongoing licensing rates paid by PSA Group to General Motors for vehicle lines developed by GM-Opel and to be sold and marketed by PSA, including items like technology, patents, as well as parts and aftersales content
- Auxiliary fees paid by PSA Group to General Motors for services such as consulting as well as Opel OnStar
Initial figures have pegged the purchase amount to be in the vicinity of $2 billion USD. It is unclear whether that figure only represents the core purchase amount or the sum of the three parts listed above. More recent reports have described the amount as being “symbolic” in nature, suggesting that the biggest financial impact of the deal will come from ongoing licensing fees. These licensing fees are reportedly still being negotiated, making it unclear how GM will be compensated for its technology.
PSA is said to be particularly interested in the Opel Mokka B-Segment/subcompact crossover and the new Opel Ampera-e electric vehicle.
Comments
Hope that GM will keep the R&D and engineering of Opel, newly developed platform and engines .
GM should be looking at a JV alliance resembling Nissan Renault.
GM could win big by licensing future platforms to all PSA divisions (Omega for DS) while uding Opel for the shrinking compact and mid-sized segments.
GM and PSA could also take PSA global together. Cannibization of market share is a myth, ask Hyundai.
Gm will keep it all and has full control over R&D and engineering of opel .
It will be the R&D of GM Europe