PSA Group to Buy German Automobile Manufacturer Opel
According to various industry watchers, parent company General Motors is in talks with PSA, manufacturers of Peugeot and Citroen automobiles to sell their struggling European division. Both brands Opel and, the British Vauxhall brand would likely be sold for $1.3 billion Euros. Also in talks is its European GM Financial Arm, which is said to be going for $1 billion Euros.
According to various industry watchers, parent company General Motors is in talks with PSA, manufacturers of Peugeot and Citroen automobiles to sell their struggling European division. Both brands Opel and, the British Vauxhall brand would likely be sold for $1.3 billion Euros. Also in talks is its European GM Financial Arm, which is said to be going for $1 billion Euros.
The German manufacturer has been under GM since before the Second World War, and GM had in the 2009 economic downturn, mulled the idea of selling the company. Swedish manufacturer, SAAB, which was also under GM control on the other hand, was not spared the hammer.
PSA shares saw a jump of 5.2 percent, after Carlos Tavares, CEO of PSA Peugeot Citroen, mentioned that the loss-making German manufacturer would make a turn-around, utilising lessons learnt from PSA’s recovery during its own near-bankruptcy.
With the acquisition, PSA Peugeot Citroen looks to challenge the leading Volkswagen group, as a leading automotive car giant. Together with Opel, PSA would become Europe’s second largest automobile manufacturer by sales, with a market share of 16 percent, while Volkswagen currently dominates the market at 24 percent.
Both PSA and Opel, under an existing European alliance, share some production. The acquisition would mean that the three brands would benefit from cost savings coming from joint development of automotive platforms, engines and systems.
For Opel, this will mean that the Opel Corsa sub-compact hatch will see a year’s delay of a year, and will be slated to be launched in 2020. This will be the first Opel to benefit from the joint development.
The current offerings in Singapore are the Adam supermini, Astra hatch and estate compacts, the Insigna full-sized sedan, Cascada cabriolet, Zafira MPV and the recently launched Mokka X compact SUV. Commercial vehicle offerings include the Combo compact panel van (a joint collaboration between Fiat Chrysler and Opel) and the Opel Vivaro (a Renault, Fiat, Opel, Nissan collaboration).
While it is still business as usual here, do expect some exciting new vehicles coming up in their range.
Sources:
https://sg.finance.yahoo.com/news/psa-agrees-buy-opel-deal-valuing-gm-unit-064541297--sector.html
http://www.businessinsider.sg/gm-opel-sale-23-billion-2017-3/?r=US&IR=T#u2Lhxu1EyrCRgV5w.97
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