General Motors has officially completed the sale of its European Opel/Vauxhall subsidiary to PSA Groupe. That is a done deal. As of August 1, 2017, that is a done deal. What isn’t a done deal is GM’s responsibility for the Opel/Vauxhall pension obligations.
That’s right: as a condition to closing the Opel/Vauxhall sale, GM agreed to fund certain European Opel/Vauxhall pension obligations in the amount of €3.0 billion. At the time GM and PSA announced the Opel deal, it wasn’t clear how GM will deal with the obligation… but it is now.
According to a statement from the company, GM will fulfill the Opel/Vauxhall pension obligation by issuing unsecured notes (in other words, a loan) in the amount of $3 billion USD.
Update: we now have the details of the GM unsecured notes that the company will use to meet its Opel pension obligations.