PSA and General Motors have made an agreement that French concern will buy Opel division which produced losses to the American company, and that dill will be announced on Monday morning. Announcement will be stated in Paris and according to the insider information deal is closed on Friday, and it will make PCA second largest automaker in Europe. Several sources confirmed that labor unions in France, Germany and United Kingdom were informed about the arrangements. Seems like that timing is tuned with the opening of Geneva Motor Show, which will happened on Tuesday. Both companies refused to comment.
Negotiations were not easy and main topics were over Opel’s pension plan, licenses of electric car technology, and clauses to prevent PSA competing with GM in certain markets. In some point negotiations were on the verge of breaking. However it is not known yet what is the status of the pension deficit, or was it in the deal at all.
Opel cars export go global after GM deal
GM is leaving Europe, where it has recorded the losses in the last 18 years, while the deal is giving PSA a third mainstream brand to push into new international markets. PSA is planning to export Opels, which are currently only sold in Europe, around the world to compete in markets where appetite for French brands Peugeot and Citroen is not strong.
The use of electric car technology, developed by General Motors for the Chevrolet Bolt in the US but rolled out to the Opel Ampera-E in Europe, was also a point of contention. Peugeot’s technology for fully electrifies vehicles will not be ready earlier then 2019.
Whether it agrees not to use Opel to compete with General Motors in key markets was another sticking point in the discussions. “You don’t want PSA-branded Opels competing with Chevrolet in Brazil or the US,” said one person who advised on the deal.