We’ve already got the Renault/Nissan Alliance, so why not a General Motors/ PSA Peugeot-Citroen one? Well according to PSA Chief Executive Philippe Varin that might just be a possibility, at least from a manufacturing standpoint.

Varin says that PSA is currently in talks with General Motors, discussing the possibility of GM teaming up with the French automaker to help stem the latter’s stagnant sales in Europe (on which it heavily relies) as well as helping reduce manufacturing costs.

The idea is to see both automakers develop and manufacture cars and powertrains through a joint effort in Europe, though each manufacturer would retain its separate branding, marketing and distribution network.

This is seen as adding benefits to both PSA and Opel, GM’s  European arm which, like Peugeot, is currently struggling to compete against giants like Volkswagen and Renault, thanks to high labor costs and limited manufacturing capacity.

The venture will also give Peugeot improved access to overseas markets such as China and South America; it could possibly even witness a return of the brand to the US for the first time since 1992.

However, any joint venture between the two companies will have to receive the blessing of the Peugeot family, which still controls some 30 percent of PSA stock. In addition with failed merger talks between Peugeot and Mitsubishi still relatively fresh on some minds, Varin is understandably cautious about any future alliances, though with European sales dropping by 8.8 percent last year and Peugeot stock halving in value over the last 12 months, any joint venture would certainly be welcome news.

In the meantime while discussions take place, Peugeot is doing what it can to weather the current economic storm, Varin having recently announced that the company will be selling some 1.5 billion euros ($1.98 billion) in assets to help alleviate debt, which currently stands at around 3.4 billion euros ($4.5 billion).

[Source: Auto News]

Announcing its 2011 financial results, General Motors has reported record profits of $7.6 billion, an incredible 62 percent increase from last year. Its previous record was $6.7 billion in 1997.

Annual revenue increased by 11 percent to $150.3 billion for the American automaker and its global says jumped 7.6 percent for a total of nine million vehicles sold. In North America alone, unit’s adjusted earnings nearly doubled in 2011 to $1.5 billion.

As for GM’s international operations in the fourth quarter, profit grew by a third to a respectable $400 million.

Despite positive numbers, General Motors has also fallen remarkably short in some areas. Fourth quarter profits lacked as GM’s European business was hit with a $500 million loss, including $200 million in restructuring costs. For the year, Opel suffered a $700 million loss. GM’s initial target was to bring the figure to break-even but eventually allowed the target to drop when demand declined.

In South America, what was a $200 million profit a year market, became a $200 million loss for 2011.

Finally, GM is working hard to minimize its $24.5 billion pension shortfall, which is at least smaller than what some analysts had feared.

Stronger than expected domestic performance is only great when numbers elsewhere follow suit. Edward Jones analyst Matt Collins commented, “The good news is they’ve done a nice job getting North America back on track; the bad news is the rest of the world. In order to get the stock moving again, they really need to address international profitability and the pension.”

GM Chief Financial Officer Dan Amman answers reporters, “We obviously have work to do still and a long way to get to the objectives we ultimately want to get to. We clearly have work to do in Europe. We have work to do in the South America business. Frankly, we have work to do all around the company in terms of cost opportunity.”

However, Dan Amman did not produce select details for the 2012 financial forecast. A cause for concern, Morgan Stanley analyst Adam Jonas said in a research note, “A lack of guidance leaves GM shares shrouded in the thick fog of macro uncertainty.”

[Source: Reuters]

Opel and Vauxhall have announced the lineup of debuts for the upcoming 2012 Geneva Motor Show, with the highly-anticipated Astra OPC/VXR headlining the booth.

The aggressively designed Astra OPC/VXR will be powered by a turbocharged 2.0L powerplant with 277-hp and 295 lb-ft of torque and will also sport High Performance Struts (HiPerStruts), a FlexRide chassis, and lightweight bucket seats in the interior.

Next on Opel’s list will be its new Mokka crossover which is based on the Buick Encore. It will be released with three different engine choices available, a standard gas 1.6L with 113-hp, a turbocharged 1.4L with 138-hp and a 1.7L CDTI diesel with 128-hp. Front-wheel drive will be standard on the new Mokka, but all-wheel drive will be an option. Opel also mentioned in their release that all Mokka models will come with Electronic Stability Control (ESC), Traction Control (TC), Hill Start Assist (HSA), and Hill Descent Control (HDC) as standard.

The Insignia BiTurbo was also announced as a debut, featuring a 2.0L twin-turbo diesel engine with 192-hp and 295 lb-ft of torque.

Not exactly automotive related, but Opel and Vauxhall will also show off a RAD e electric bike concept. They described it as the “first e bike to be built around automotive construction and production principles.” The RAD e electric bike will show off a 250-watt motor that can give it an electric-assisted range of 37-90 miles.

Opel will also have refreshed variants of their Corsa, Meriva, and Astra at the show including their Corsa Kaleidoscope edition, a Meriva 1.4 LPG Turbo ecoFLEX model and an Astra 1.4 LPG Turbo ecoFLEX model.

GALLERY: Opel / Vauxhall Geneva Lineup Preview

In 1989, Rick Moranis played a nerdy dad who accidentally downsized his children to an insect scale in Honey, I Shrunk The Kids. He probably wouldn’t have believed it if someone told him that 23 years later automakers would be doing the same thing to their cars.

For those of us living in the North American 2012, there are increasingly large swarms of little cars buzzing around the streets. The din their tiny engines makes isn’t overwhelming yet, but just wait.

General Motors’ German subsidiary, Opel, is planning to release a micro car they’re calling the Allegra (or, tentatively, Junior). No, not the allergy medication, though the thing is small enough to be mistaken for a bee in ragweed season, at least compared to the standard American palate. When the Allegra hits Europe in 2013 it will probably stand to compete against cars like the Volkswagen Up, MINI Cooper and Fiat 500.

In fact, it’s a solid 3.3 feet longer than the Mercedes-Benz spawned Smart ForTwo, which looks like a cross between a golf cart and an alien space pod. Our spies caught the Opel Allegra on camera during winter testing, but what’s the big deal? Opel cars aren’t sold in North America, right?

Well, not necessarily. Rumors are floating around that the not-so-smallish micro car might make it overseas rebadged as a Buick. (Why not? It’s not the first Buick to come from Opel). And with the recent launch of the Fiat 500 and the Scion iQ on our shores, the market for mini-cars is growing.

Of course, the name will likely change to keep big pharma happy.

GALLERY: Opel Allegra/Junion Spy Photos

For the first time in it’s 47 year history, the European award for car of the year will be announced at the 2012 Geneva Auto Show.

Hakan Matson, automotive editor of Swedish newspaper Dagens Industri and President of the jury said, “We are very pleased to have won the Geneva Motor Show as our partner. From this year on, the Car of the Year announcement will mark the ceremonial kick-off for the most important event in the European automotive sector and provide journalists as well as manufacturers with a new platform for exchange.”

This competition is regarded as the most prestigious automobile award that a car can win. The jury is made up of 59 renowned auto journalists from 23 different European countries and was brought to life originally by seven different European car magazines.

The nominees for 2012 Car of the Year are: Citroën DS 5, Fiat Panda, Ford Focus, Opel (Vauxhall) Ampera/Chevrolet Volt, Range Rover Evoque, Toyota Yaris and the Volkswagen Up!. Electric motors, fuel efficiency and smaller bodies seem to be the theme for this years nominees.

For more info, visit http://www.caroftheyear.org/

Last month, GM and the National Highway Traffic Safety Administration announced the Chevy Volt’s fire hazards after the electric vehicle suffered collision. As investigations continue, GM’s Opel react by announcing the delay of Ampera deliveries throughout Europe until a solution to the defect is found.

An Opel spokesman explains that Opel is, “not currently delivering the cars to customers while we set up the process to deal with these highly charged batteries to make sure they are safe.” The Opel Ampera and the Chevrolet Volt are built alongside one another in the Hamtramck, Michigan assembly plant and share the same electric and battery technology.

However, there has been no word yet as to how long the delay will last or whether the number of Ampera deliveries in France, Germany, Switzerland, Belgium, and Holland will be eligible for vehicle buy back.

Meanwhile, a spokeswoman of Vauxhall confirmed that there will be no delays for its version of the Volt and the first examples of Vauxhall’s electric car will be delivered to customers by May.

[Source: AutoNews]

General Motor‘s European subsidiary, Opel has contributed greatly to GM’s engineering and technology development. Despite this, Opel has had difficulty making profit. GM Vice Chairman and Opel’s supervisory board chairman, Stephen Girsky explained to Financial Times Deutschland, “Unfortunately, our plan for making Opel profitable this year did not work.”

Analysts suggest  causes for Opel’s unprofitability include its costly vehicle production in Germany. Germany is one of the most expensive labor markets in the world and Opel’s lack of a premium brand makes attaining the desired profit margin more difficult. If Opel’s lack of performance continues, GM may decide to scrap the brand.

GALLERY: Opel Insignia

[Source: Left Lane News]

Opel, General Motors’ German wing is boasting big changes to their Insignia sedan, including a new biturbo diesel.The engine makes 195 horsepower and about 295 foot-pounds of torque, but the real eye-catcher on the new engine is fuel consumption and emissions. The new Insignia is only supposed to emit 129g/km of CO2 and achieves 48 miles-per-gallon.

Diesels typically get better mileage than gasoline engines, but that improved economy usually came hand-in-hand with performance compromises. While that is still true, the gap is shrinking somewhat. The biturbo system takes advantage of differently-sized turbochargers to reduce turbo lag, spooling up the smaller piece first and diverting exhaust to the larger turbo as RPMs increase. The system is seamless according to GM.

The biturbo diesel Insignia can get to 62 mph in 8.7 seconds and tops out at 143 mph, which is a significant improvement considering many small displacement turbo diesels aren’t happy past about 80 mph.

According to Opel, the new Insignia will sell for 33,000 euros and will come with a slew of other improvements including optional all-wheel drive. AWD models will also come with their SuperSport suspension, featuring adaptive damping, Brembo brakes and the HiPerStrut system to improve handling.

The new model also gets adaptive cruise control and some radar-based safety features including forward collision alert.

[Source: Left Lane News]

It’s no secret that General Motors’ European arm, Opel/Vauxhall has been struggling. With an ongoing debt crisis in Europe, high labor costs in Germany and regional status, Opel is finding the going difficult against many rival automakers in its homeland, including traditional competitor VW, whose tentacles stretch far beyond the boundaries of Europe.

Last year, Adam Opel AG lost some $1.6 billion and although GM has been looking at plans to sell the ailing company, recent news suggests that it plans to keep Opel under it’s wing, at least for the time being. One aspect which would appear to confirm that is the appointment of Stephen Girsky to the role of chairman of the board, replacing Nick Reilly who is officially retiring.

During a recent statement, Girsky said that “in order to fully leverage [Opel's] potential we will continue to work on optimizing the cost structure, improve margins and make use of economies of scale within the group.”

One of the biggest obstacles is very high assembly costs, which have continued to put a major dent in Opel’s profitability even though its research and development arm remains first rate. In order to help deal with that issue, as well as Germany’s powerful IG Metall manufacturing union, GM is bringing in Peter Thom as it’s Opel manufacturing chief. Thom’s is armed with experience working in China and a mandate to significantly cut costs, two things that will no doubt have far reaching effects.

General Motors has announced its decision to delay the addition of a second shift for the Chevy Volt assembly plant.

Intended to meet projections for the Volt to double its production by 2012, the second shift is no longer necessary as a plant overhaul conducted this summer plus a modest addition of 300 workers working in one shift is sufficient enough to meet GM’s 60,000 unit production target. GM’s move will dramatically reduce cost by improving upon the assembly plant’s efficiency.

As a matter of fact, earlier forecasts for Volt’s 2012 production were a more conservative 45,000 units, indicating a better reception towards the EV than GM expected. As Volt demand continues to increase and a next generation Chevrolet Malibu will begin production at the plant next year while a new Chevrolet Impala will arrive for 2013, GM still intends to launch a second shift to meet demand, providing jobs for hundreds of more workers.

George McGregor, president of UAW Local 22 and the labor representative for the workers of the plant, says that the second shift will begin sometime in 2012.

[Source: Automotive News]