America’s General Motors (GM) is in talks with France’s PSA Group to sell GM’s European unit Opel, reports Reuters.
The PSA Group, which owns the Peugeot and Citroen brand have since confirmed that the company is in talks with GM, but cautions against speculations as there are no assurances that that an agreement will be reached with GM.
The company’s press statement reads:
Since 2012, General Motors and PSA Group have been implementing an Alliance covering, to date, three projects in Europe and generating substantial synergies for the two groups.
Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well. PSA Group confirms that, together with General Motors, it is exploring numerous strategic initiatives aiming at improving its profitability and operational efficiency, including a potential acquisition of Opel / Vauxhall.
There can be no assurance that an agreement will be reached.
It is left to be seen if both companies can reach an agreement on the matter. This is not the first time GM and PSA Group came together. The last ‘marriage’ between the two didn’t last more than a year.
In 2012, General and the PSA Group, then known as PSA Peugeot Citroen, formed a global alliance which was supposed to lead to sharing of vehicle platforms, components and modules; and the creation of a global purchasing joint venture.
By 2013, the deal was off and PSA Group dumped GM in favour of Chinese car maker Dongfeng Motor, which now owns 14 percent of PSA Group. The French government owns another 14 percent.
If the deal goes through, the combined volume of Opel, Peugeot and Citroen will see the PSA Group surpassing Renault to become Europe’s second largest car brand, ahead of Ford but still behind the Volkswagen Group.
This latest development on the PSA Group should have no bearing on the company’s talks with Proton to takeover the Malaysian carmaker’s Tanjung Malim plant, and to become its technical partner.
The discussion with GM is only limited to Europe and the Opel brand (also known as Vauxhall in the UK) is not sold outside of Europe.