General Motors and the PSA Group, owners of the Peugeot, Citroen and DS marques, have confirmed they are discussing a sale of Opel and Vauxhall to the French car maker.
Talks on a potential takeover of GM’s European brands are currently being held as part of wider discussions regarding the existing co-operation between the two companies, including “additional expansion” and “numerous strategic initiatives”.
Although talks are ongoing, both car companies cautioned that “there can be no assurance that an agreement will be reached”.
Above: Opel Crossland X.
These shared vehicle projects sprang from the time, between 2012 and 2013, when GM was the second largest single shareholder in the PSA Group with a seven per cent stake.
Following a recapitalisation of the company in 2014, the French government, the Peugeot family, and Chinese car maker Dongfeng each now own around 14 per cent of the PSA Group.
Above: The next-generation Holden Commodore courtesy of Opel.
During its bankruptcy in 2009, GM considered a sale of its European operations. In the end, GM kept Opel and Vauxhall, but sold off Saab.
Since then, Opel has been more tightly integrated into GM’s global product plans. Various Opel models help to flesh out the Buick range, with the Opel Mokka sold as the Buick Encore and the Opel Insignia rebadged as the Buick Regal.
It’s not clear how Holden and Buick’s product plans will be altered in the medium term if Opel and Vauxhall are sold to the PSA Group.
Above: Peugeot 308 wagon.
GM’s motivation for selling its European operations may come from continuing losses on the Continent. Opel/Vauxhall lost US$257 million ($338 million) in 2016, and US$813 million ($1.1 billion) in 2015.
According to the BBC, GM’s European operations have lost a total of over US$15 billion ($19.7 billion) since the turn of the century.
Listen to the CarAdvice team discuss this car news below, and catch more like this at caradvice.com/podcast.