February 22, 2020

GM set to enjoy $2 billion Opel windfall

GM set to enjoy $2 billion Opel windfall

Opel sale announcement expected next week…

General Motors is set to walk away from Opel with a $2 billion U.S. dollars ($2.6 billion AUD) windfall.

Reports this morning say GM has valued the German car brand, which it has owned since the 1920’s, at that amount and it’s believed it’s now only a matter of days before a deal with PSA Group is announced.

Automotive News says the manufacturers are working to complete the framework of a deal before next Thursday, a key date as the maker of Peugeot and Citroen cars is set to report full-year earnings then.

The news outlet saying that they’ve been told by unnamed sources within both camps that while a deal looks likely, it could still fall apart.

Union Support for the Deal

The proposed deal, which would affect more than 30,000 Opel/Vauxhall workers, has in-principle union support in Germany and the UK.

It’s been reported that GM representatives have sat down with union reps to discuss the possible sale to PSA Group and initial resistance has softened.

“We are prepared to conduct talks with PSA in the case of an acquisition openly and in a constructive manner and to bring those talks to a conclusion as soon as possible.” Wolfgang Schaefer-Klug, Opel’s top labor representative, said in a statement.

The union’s positive stance comes after the GM CEO also backed the deal (details here).

We will bring you more news on this as it comes to hand.

About Kate Richards 1217 Articles
Kate has always had an interest in writing and cars and now as a key member of the Behind the Wheel website team she gets to spend her days consumed by both. Aside from being a contributor and an editor at Behind the Wheel, Kate enjoys driving her Lancer EVO and walking her beloved dog, Max!

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