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Old 16th February 2017, 13:27   #1
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Default Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

General Motors is reportedly in talks with the PSA Group (owners of the Peugeot and Citroen brands) to sell its European business operations. If this deal is finalised, the PSA Group is expected to take over the Vauxhall and Opel brands from General Motors.

If the PSA Group does acquire GM's European business, it would become the second largest automaker in Europe with a market share of around 16.3 percent. Volkswagen AG is currently the leader of the European passenger car market with Renault in second place.

Meanwhile, the sale of the Vauxhall and Opel brands will take General Motors out of the list of top 3 automakers globally. The two brands currently account for sales of 10 lakh units every year and are a major volume pullers for the American automotive group, which is presently the third largest car manufacturer in the world after Volkswagen and Toyota.

Further details about the probable deal structure and valuation of the Vauxhall and Opel brands are not available as yet.

Source: Reuters

Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations-opellogo20091920x1080.png
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Old 17th February 2017, 13:32   #2
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Default re: General Motors might sell Vauxhall & Opel to Peugeot

Surprising news honestly. Peugeot was in trouble until Carlos Tavares successfully turned the company around. Full credit to him for that. However, I don't think it's a good idea for them to buy Opel, a company that has consistently bled money for 10 - 15 years. It would make Peugeot weaker. I think this Carlos is trying to do what the other Carlos (Ghosn) did with Renault-Nissan, but one really can't compare Opel & Nissan. Opel will be a huge drain on Peugeot's resources.

For those interested in the topic, Bloomberg has an excellent 6-point synopsis - link to article:

Quote:
1. Why would GM want to get out of Europe?

GM has struggled for years to turn around Opel, with losses totaling more than $20 billion since 1999. Future prospects remain challenging, given that Opel is a volume carmaker with low profit margins producing vehicles in countries with high labor costs, including Germany, Spain and the U.K. The market is also saturated with overcapacity.
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Old 6th March 2017, 12:27   #3
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Default re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

Groupe PSA acquires GM's Opel/Vauxhall brands and GM Financial's Europe operations for 2.2 billion euros.

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Old 6th March 2017, 12:45   #4
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Default re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

Some more details on the deal. Interesting to note that GM will continue to have responsibility for the pension provisions for Opel employees working in Germany and the UK.

http://www.autonews.com/article/2017...-begin-to-leak
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Old 6th March 2017, 18:00   #5
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Default re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

This news is very surprising.
Opel/Vauxhall are definitely not laggards in the Europe Market.
They are closely behind Renault, in third place in overall sales in Europe.

They have a very wide and above-average product line, strong powertrains & reasonable brand value as well.

Instead of focusing on slowly increasing profitability, they chose to exit Europe altogether. This does not sound like a very rational decision.

Wondering what next is on the cards!
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Old 7th March 2017, 12:09   #6
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Default Re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

Sound decision, forced by The CEO of GM and TRUMP administration. Wonder what will happen to Holden.

PSA now has another Carlos (Tavares) Playing Magician just like Carlos of Nissan-Renault- MItsubishi Fame.

Excellent move. WOnder what led PSA to buy Ambassador though. :P
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Old 7th March 2017, 13:50   #7
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Default Re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

Quote:
Originally Posted by abhishek46 View Post

Instead of focusing on slowly increasing profitability, they chose to exit Europe altogether. This does not sound like a very rational decision.

Wondering what next is on the cards!
Three things

1: Brexit - most of GM's sales and production were in the UK. With Brexit, the auto component base as is an unknown

2: Dieselgate - Increasing regulation and requirements - GM do not wish to put in good money after bad to incrementally improve its low market share. Ampera excepted, it has no hybrid versions available.

3: High Base cost of the cars - The base cost of Opel/Vauxhall cars are high. Partially due to the low volumes. VW nailed it by spreading costs across various models and brands. Ford did this by spreading the same car around geopraphically
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Old 13th March 2017, 15:06   #8
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Talking Re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

Life Goes A Full Circle, it was Hindustan Motors which brought the Opel Brand in the 90's to India. Now PSA has tied up with Hindustan Motors to make cars in India and has also gone ahead to acquire Opel - Vauxhall, so if tomorrow PSA decides to sell Opel cars in India it would be Hindustan Motors - Opel once again.
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Old 1st August 2017, 14:00   #9
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Default Re: Peugeot acquires Opel & Vauxhall, along with GM Financial's European operations

PSA Group completed its takeover of the Opel and Vauxhall brands from General Motors.

PSA installs two French managers at Opel. Opel plans much leaner management structure.

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