PSA Group is in discussions with General Motors on various strategic initiatives, including the possibility of acquiring Opel/Vauxhall. The news was first broke by Bloomberg and Reuters early this morning as sources revealed the two were in talks about swapping the ownership of Opel. Since then, a spokesman for PSA Group confirmed the talks.
The maker of Peugeot, Citroen and DS cars is "exploring a number of strategic initiatives with GM with the aim of increasing its profitability and operating efficiency, including a potential acquisition of Opel."
The two automakers already share production of SUVs and commercial vans, a key remnant of a possible alliance between the two automakers back in 2013.
Why would GM sell Opel? Why is PSA Group interested in it?
“I can see why GM may possibly seek to sell its European division, which hasn’t made money in many years. It is less clear why Peugeot would be interested in buying GM’s assets. The purchase would give them capacity in Germany, one of the most expensive countries to produce cars and would lead to excess capacity,” said George Galliers, an analyst with Evercore ISI.
For PSA Group, the purchase of Opel would give them access to Opel's engineering and electric-car tech, along with increasing their scale and cost savings from joint purchasing a source tells Bloomberg.