• GM in Talks to Sell Opel to Peugeot: Implications of Withdrawal from the EU?


    According to an article by Reuters (later confirmed by Handelsblatt), GM has been in serious talks with Peugeot Owner group PSA about the sale of GM’s European brand Opel. Opel is not a very significant brand to many American consumers. We know the brand better as Buick. Regardless of the name of the company, this deal would have huge implications on the European car market. Furthermore, the move by GM to leave the EU altogether raises some questions. It should be stressed that a deal has not yet been reached, but at the very least, spokespeople from both PSA and GM have confirmed that the two companies are in serious talks about the sale of Opel to Peugeot.

    What would this mean for the European car market? Well for one, the combined Peugeot and Opel group would surpass Renault as the second largest market share in Europe, with a combined share of 15% of the market. Note that the Opel brand also holds with it the brand Vauxhall. This market share is second to the Volkswagen group who holds a 23% of the market.

    This deal has some political implications as well. Some trouble brews in Germany where Opel is headquartered. There is a part of the German population that is not very happy about Opel being under French ownership, especially given the potential for plant closures and significant job loss. These issues are made even more tense by the fact that both France and Germany have elections coming up.

    As for GM, this deal has some potential negative effects. One being that Opel is a huge source of engineering development. Without this company and its subsidiaries, GM will bee missing out on an important source of information, as well as sales.

    The sale of Opel to Peugeot is certainly a story to pay attention to. As I mentioned before, there are a ton of different political and economic implications that this will have on the automotive scene both in Europe and in the US. Should the deal go through, it will be very interesting to see what kind of trouble this deal may stir up. Be sure to keep your eyes on TFLcar.com for more information regarding this important piece of automotive news.

    While GM’s future presence in Europe is anything but certain, their push to sell electric vehicles is well underway. To see what could be the future for the GM brand, be sure to watch the video below:

     

    Michael Curtis
    Michael Curtis
    Michael has always had a passion for things with four wheels and an engine. His parents often joked that his first word was "Porsche." He currently spends his time as a Communications student at CU Boulder and writes for TFL as an intern trying to learn the ways of the automotive journalist. In his spare time, he attends all the local Cars and Coffee events he can possibly make time for.

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    10 thoughts on “GM in Talks to Sell Opel to Peugeot: Implications of Withdrawal from the EU?

    1. Opel I really don’t care about ,but vauxhall, without that their wouldn’t be the g8gt without the g8gt their wouldn’t be the new Chevy ss two cars that forced Chrysler 300 to be more competitive ford as well dang gm

    2. This is basically an admission by GM that they see no chance of reasonable profits for Opel in the foreseeable future. Opel has not turned a profit since the 90’s and it is clear that GM is through pouring money into it. That money would be better spent on products and markets that are more profitable.

    3. you guys/girls probably know GM is on a relentless upward sales campaign …if the car doesn’t cost a mint they aren’t interested and if the trucks don’t cost a home, they aren’t interested…

      i think one major mis-plan that GM makes worldwide is to forget the starter car or truck markets.

    4. So do you think this would be the end of the Buick brand in the US?

      I’ve also heard some grumblings that this could be the beginning of a GM/FCA merger. Do you think we’re going to see the Big 3, become the Big 2?

    5. First off gm and fcm will never and I mean never merge. Howard and 1guyin10 you make great points and will someone please kill Buick just put that rabid dog down bring back Pontiac firebird gto g8gt

    6. This probably more about Brexit. Vauxhaul and Opel production is split between Britain, The Czech Republic and Germany. The EU will have its way when it comes to tariffs from Britain even if Britain taxes continental goods.

      If Opel isn’t profitable now, it was about to get a lot worse in the foreseeable future. Selling Opel to PSA avoids GM trying to get embroiled in European politics or having to build new plants and develop new supply lines. That problem now becomes PSAs issue to deal with.

      Combined sales between Open/VXH and PSA would probably put them in 3rd or 2nd place in Europe as far as volume is concerned. Plus Opel if it is allowed might be able to inject some common sense and function first logic into PSA products… the whole 500 years into the future designs from those companies is getting stranger and stranger.

      The European market is also kind of strange in that for the most part national brands seem to do very well in their home markets…. the if and but game can last all day, but this is most likely related to Brexit since Vauxhaul only makes one car in Britain and imports all the other modes and their parts (these are not premium cars that can take a 10%-15% increase an still compete,) the only way to save Opel is kill Vauxhaul by selling the lot to the French, who probably will come to terms with Germans but most likely not the British.

      Either that or we can just make up a conspiracy on the spot:

      1)some SNITZ is about to go down on the old world and GM wants to divest and cash out while it can still get some money before tank are rolling through Paris again.

      2) GM have an inside scoop that heavy import duties are about to be enacted at US Customs. This would make Buick a dead brand outside of China and Make Opel parts and technology shipped from E.U. cost prohibitive.

      GM has also been pushing Chevrolet in Europe. Though I vaguely remember that they wanted out on Chevrolet too. It’s a shame about Buick but it seems all they were good at outside of the PRC was ruining Opels with nautical design cues that should have been but away at latest by 1969.

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