GM and Peugeot-Citroen Have Reportedly Reached an Agreement on Opel/Vauxhall
PSA becomes Europe's second-largest automaker, after Volkswagen
The board of Peugeot-Citroën parent PSA on Friday approved a deal to purchase Opel/Vauxhall from General Motors, Thomson Reuters has reported. The sale would make PSA Group Europe's second-largest automaker, after Volkswagen Group.
PSA and Opel public relations declined comment on the report, Reuters said. The news service says Opel managers on Friday had adjourned until Monday a town hall meeting with its employees, saying they were not ready to discuss details of the proposed sale. Sources told Reuters on Thursday that PSA and GM had narrowed differences on roughly $10 billion in Opel pension liabilities.
Another sticking point had been over GM's demands that Opel under PSA be banned from competing against Chevrolet in China and in other overseas markets. Several Chevy and Buick models sold in China are basically rebadged Opel/Vauxhalls.
The sale of Opel/Vauxhall comes after 16 consecutive years of fiscal losses. GM recorded an $0.3-billion loss for Opel/Vauxhall last year, saying in its earnings report that its European operations would have broken even if not for an $0.3-billion charge taken against Great Britain's Brexit vote to exit the European Union.
GM purchased Vauxhall in 1925. It purchased a part interest in Opel in 1929 and bought full control in 1931.