FRENCH car giant PSA Group wants to buy Vauxhall/Opel – it has today confirmed it is in talks with America’s General Motors on a deal.
In a statement the parent of the Peugeot, Citroen and DS brands confirmed the companies were “exploring numerous strategic initiatives aiming at improving its profitability and operational efficiency, including a potential acquisition of Opel/Vauxhall”.
PSA Group said: “Since 2012, General Motors and PSA Group have been implementing an Alliance covering, to date, three projects in Europe and generating substantial synergies for the two groups.
“Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well. PSA Group confirms that, together with General Motors, it is exploring numerous strategic initiatives aiming at improving its profitability and operational efficiency, including a potential acquisition of Opel.
There can be no assurance that an agreement will be reached.”
PSA has had no UK vehicle plants since the closure of the Ryton works in 2006.
Vauxhall, employing some 5,000 directly and supporting more than 30,000 other supply chain and retail jobs, has its highly successful commercial vehicle production line at its Luton HQ and the Ellesmere Port plant which is the main production centre for the award-winning Vauxhall/Opel Astra – there is also a Polish Opel sister plant, following the closure of a German plant.
With sales and revenue of €54 billion in 2015, the PSA Group designs unique automotive experiences and delivers mobility solutions. In addition to its three brands, Peugeot, Citroën and DS, it has an array of mobility and smart services from its Free2Move brand, is the European leader in terms of CO2 emissions and an early innovator in autonomous and connected cars with 1.8 million vehicles worldwide.
It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia.
Analyst Frost & Sullivan research manager Vishwas Shankar says PSA and Opel have worked closely for several years, with supply chain sourcing and parts shipping and there were talks of a PSA buyout in 2015 but this was rejected by Opel management.
For GM Vauxhall/Opel is the last European bastion following its post-2008 closures and disposals of Saab, Saturn, Pontiac and Hummer, while core brands Cadillac, Buick, GMC and Chevrolet are growing.
Shankar saysw: “PSA’s interest in Opel could be the link to Russia (Opel targets Russia will be its biggest market in 2020) and comes on the back of the announcement that PSA has a new partner in India (Foray again) with a manufacturing arrangement with the CK Birla Group.”
