GM's Opel Division May Merge With Peugeot

Jason Siu
by Jason Siu

In a second phase of the alliance General Motors and PSA Peugeot Citroën signed earlier this year, both automakers are exploring ways to combine their European operations in a joint venture.

Both automakers are looking for ways to help curb their losses in the declining European automotive market, with one option for GM’s Opel/Vauxhall unit to merge with PSA’s automotive operations in a joint venture. Other options that have been discussed include the sale of Opel to Peugeot, buying Peugeot’s automotive business, and even combining all of them into a new entity.

Sources say that a joint venture could net GM 30-percent stake along with a $10 billion investment into the new company. A 30-percent stake would allow GM to not have to consolidate Opel’s financial results, removing its biggest financial liability.

GM has lost approximately $16 billion in Europe over the last 12 years, while PSA is using up 200 million euros in cash each month and doesn’t expect to turn a profit until 2014.

[Source: Automotive News]

Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

More by Jason Siu

Join the conversation