$2.2 Bilion, that’s how much French automaker PSA Group is paying General Motors for GM’s Opel and Vauxhall division and GM Financial European operations in Europe.
The deal was announced this morning and it means the end of 90 years of GM’s control of Opel in Europe.
“For GM, this represents another major step in the ongoing work that is driving our improved performance and accelerating our momentum,” said GM Chairman and CEO Mary Barra. She went on to tell reports in Paris, “This was a difficult decision for General Motors but we are united in belief that it is the right one.”
Since 1999 GM has lost $20 billion operating Opel/Vauxhall in Europe.
“A game-changer for PSA,” said Carlos Tavares, the CEO of PSA. “We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” Tavares added in a statement.
PSA Group builds Peugeot and Citroen cars in Europe and the move to purchase Opel/Vauxhall will give the company “economies of scale” to grow its business in Europe accord to the PSA Group.
Last year Opel/Vauxhall sold 1.16 million vehicles in Europe. PSA Group says the purchase will equate to a savings of $1.8 billion by 2026. The purchase will also give PSA a 17 percent combined market share in Europe putting it just behind the Volkswagen Group as Europe’s second most popular car company by sales volume in the region.
Check out this recent TFLnews video as Tommy and Charlotte discuss the news.