GM News: Rumorpile: Is There More To The GM-PSA Deal?

[William Maley]

William Maley

Staff Writer - CheersandGears.com

October 14, 2012

When General Motors and PSA/Peugeot-Citroen announced their alliance back in February, questions were brought up of what this deal would bring and if there was more this to the deal.

This past week, French Newspaper La Tribune reports that the two companies have been in talks to possibly extend their partnership to a 50/50 deal, with General Motors adding more cash. Neither company commented when asked.

Reuters has learned from one of their sources that the two companies has discussed "selling Opel to Peugeot, buying Peugeot's automotive business or putting them all together in a new entity."

The first two options are good only for the seller since that would let them walk away from the mess. The third option is an unknown at this point.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

View full article

[David]

Not a bad way to get out of some poor contract issues by selling it to peugeot and then buying peugeot to get rid of some union issues, close down poor performing plants and reduce costs to survive.

[riviera74]

What is right for GM is to kick Opel to Peugeot for as much as possible, bring the tech back to Detroit, take the cash and go home. The European car market is in freefall and is not fixible until real economic changes are made, struggled through and then growth returns. For the Continent, that could be several years from now. GM's long continental nightmare that is Adam Opel/Vauxhall must end ASAP.

[David]

What is right for GM is to kick Opel to Peugeot for as much as possible, bring the tech back to Detroit, take the cash and go home. The European car market is in freefall and is not fixible until real economic changes are made, struggled through and then growth returns. For the Continent, that could be several years from now. GM's long continental nightmare that is Adam Opel/Vauxhall must end ASAP.

I would agree with that, bring the tech and the sweet Adam in CNG form back to the US and let the freefall happen and then go back in with superior products and fresh plants that are not the socialist mess they took on.

[ZL-1]

I don't really see the fit between those two. Looks like a way to dump Opel without dumping the Rüsselheim engineering assets, or a way to waste large sums of money in M&A Advisory from some Investment Bank...