"Los Angeles Times" said : GM sells its European business in $2.33-billion deal

GM and PSA will continue to collaborate on electric car technologies and maintain existing supply agreements on some Buick models. "Without Brexit, we would have reached the breakeven goal" at last in 2016 for the European business, Barra said. Carlos Tavares, the chief executive of PSA, said the deal was "a game-changer for PSA." GM, which may take a 4.5-billion-euro ($4.78-billion) writedown on the deal, will keep most pension plans. With the $2.33-billion deal announced Monday, GM is giving up brands — Opel in Germany and Vauxhall in Britain — that have given it a foothold in the world's third-largest auto market since the 1920s.


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Peugeot agrees deal with General Motors to buy its European business for $2.3 billion

We still have iconic brands in Europe: GM CEO 5 Hours Ago | 00:58France's PSA Group has agreed to buy Opel from General Motors in a deal valuing the business at 2.2 billion euros ($2.3 billion), creating a new European car giant to challenge market leader Volkswagen. By acquiring Opel, PSA leapfrogs French rival Renault to become Europe's second-ranked carmaker by sales, with a 16 percent market share to VW's 24 percent. PSA facebook/" target="_blank">shares jumped as much as 5.2 percent after Chief Executive Carlos Tavares said GM's European arm could be turned around using lessons from the French group's own recovery. The maker of Peugeot and Citroen cars vowed to return Opel and its British Vauxhall brand to profit, targeting an operating margin of 2 percent within three years and 6 percent by 2026 underpinned by 1.7 billion euros in joint cost savings. "We're confident that the Opel-Vauxhall turnaround will significantly accelerate with our support," he said.


General Motors has agreed to sell its European business in deals worth $2.3 billion. Peugeot SA will acquire General Motors' Opel and Vauxhall brands for $1.4 billion, while General Motors' European financial operations will be jointly acquired by Peugeot and BNP Paribas SA for around $955 million. CNN reports that Opel and Vauxhall have lost a combined $18 billion over the last 16 years, highlighting the struggle for General Motor's European operations. General Motor's exit from Europe comes after the company has failed to make money for nearly 20 years. General Motors has manufactured popular cars like the Astra and Corsa, both of which are branded Opel across Europe and Vauxhall in Britain.


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