General Motors sells Euro brands to PSA Group…
The deal is now officially done with General Motors confirming it has sold its European car brands, Opel/Vauxhall to the French car maker, PSA Group.
The agreement covers not only GM’s Opel/Vauxhall subsidiary, but also GM Financial’s European operations.
In total, PSA Group will be writing a cheque to GM for around three billion dollars, with the deal seeing PSA become the second-largest automotive company in Europe, with a 17% market share.
Carlos Tavares, chairman of the Managing Board of PSA, says the deal is a good one for the brands, their workers and for his company too.
“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,”
“We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage.
“We intend to manage PSA and Opel/Vauxhall capitalizing on their respective brand identities.
“Having already created together winning products for the European market, we know that Opel/Vauxhall is the right partner.
“We see this as a natural extension of our relationship and are eager to take it to the next level.”
While Mary T. Barra, GM chairman and CEO welcomed the agreement.
“We are very pleased that together, GM, our valued colleagues at Opel/Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance.”
“For GM, this represents another major step in the ongoing work that is driving our improved performance and accelerating our momentum.
“We believe this new chapter puts Opel and Vauxhall in an even stronger position for the long term.”
“We look forward to our participation in the future success and strong value-creation potential of PSA through our economic interest and continued collaboration on current and exciting new projects.”