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 AutoGuide.com 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.

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