Peugeot poised to buy GM's Opel, creating European vehicle giant

Carlos Tavares, Renault's former COO turned Groupe PSA's CEO, has previously explained that purchasing Opel would give the French group the chance to become a "European auto champion", which could quickly exceed five million annual vehicle sales.

Media reports said Friday that the supervisory council of French automaker PSA had in principle approved the takeover of GM's European arm, that is the acquisition of Opel and Vauxhall. Spokesmen for PSA and Opel declined to comment.

Earlier this year GM reported a loss of $257m (£206m) from its European operations last year.

PSA makes Peugeot and Citroen cars in Europe.

Opel managers adjourned a town hall meeting with workers until Monday morning, saying they could not yet discuss details of the proposed deal, Reuters said. Separate briefings for the German press and Opel unions are expected to be held the same day.

Subway fighting back against "stunningly flawed" report on chicken
The test can show the DNA percentage of a product, says Newmaster, but "it is very difficult" to translate that to the product's mass.

It wasn't a smooth negotiation process as there were some bumps in the road regarding the roughly $10 billion in Opel pension liabilities and also about whether a PSA-owned Opel would be allowed to go up against Chevrolet in China and other markets.

But the "non-compete" issues were finally resolved as GM agreed to inject "substantially more" into the pensions than the $1 billion to $2 billion it had initially offered, another person said. Detroit-based GM, which came close to selling Opel to Magna (MG.TO) in 2009, has faced investor pressure to offload its struggling European arm and focus on raising profitability rather than chase the global sales crown now held by VW. Two inside sources told Reuters that the deal will be formally announced on Monday.

PSA is optimistic that acquiring Opel will save the company about $2.1 billion.

PSA chairman Carlos Tavares last month said that he hopes to create a "European vehicle champion" with the combination and pledged to work with governments and unions that are anxious about job cuts. There was also the matter of potential job losses, but PSA has made the promise to "respect the existing agreements".

Related Articles

  • Obama aides left a trail of intelligence about possible Russian election hack

    Trump's incoming team and Moscow was evolving to include some of the president-elect's most trusted advisers. According to several anonymous U.S. sources, Sessions met with Russian ambassador Sergey I.
    Senate confirms Ben Carson as HUD secretary

    Senate confirms Ben Carson as HUD secretary

    Several congress members have vocally opposed Carson's nomination process including former vice presidential candidate, Sen. It was confirmed that Ben Carson will join Trump's Cabinet to lead the Department of Housing and Urban Development .
    The FCC Just Blocked Privacy Protections For Comcast And Verizon Customers

    The FCC Just Blocked Privacy Protections For Comcast And Verizon Customers

    The regulations were approved by former FCC Chairman Tom Wheeler in October, along with several other consumer protections targeted at preserving privacy.
  • US Will Temporarily Suspend Expedited Processing for H-1B Visas

    US Will Temporarily Suspend Expedited Processing for H-1B Visas

    These applications appear to be rising in number, and the USCIS says it is suspending it in order to clear some of the backlog. In a communication, USCIS said, "The temporary suspension applies to all H-1B petitions filed on or after April 3, 2017".
    Bentley Bentayga Mulliner takes the luxury SUV experience to next level

    Bentley Bentayga Mulliner takes the luxury SUV experience to next level

    Bespoke features include a new Mulliner Bottle Cooler in the rear of the cabin, Cumbria Crystal flutes and rear centre console. The bigger differences are found in the cabin, where Mulliner has combined modern and traditional coachbuilding design.
    Microsoft to Start Shipping Windows Mixed Reality Development Kits in March

    Microsoft to Start Shipping Windows Mixed Reality Development Kits in March

    It features not one but two high-res displays at 1440×1440, refresh rate of 90Hz, a 3.5mm jack along with HDMI 2.0 and USB 3.0. Gesture tracking, another key pillar of the HoloLens experience, is also missing from the Acer HMD.
  • Russian jets accidentally bombed US-backed forces in Syria: US general

    Russian jets accidentally bombed US-backed forces in Syria: US general

    An image taken from video footage and released by Russia's Defense Ministry on August 18, 2016, shows a Russian fighter-bomber dropping bombs in Syria.

    Cuomo And Schumer Denounce Acts Of Anti-Semitism Against JCCs

    The state is also offering a $5,000 reward for information leading to the prosecution of those responsible for bomb threats. Outdoor enthusiasts and activists from across NY have gathered in Albany to urge state lawmakers to back Gov.

    David Haye warns Tony Bellew: 'Enjoy your last days'

    I guess the British boxing public would still purchase the fight, but I don't think it would be a good fight at all. The 36-year-old former WBA heavyweight champion of the world also gave a disturbing insight into his frame of mind.
  • Mother allegedly tried to drown two sons in Murray River

    Mother allegedly tried to drown two sons in Murray River

    She has been charged with attempted murder after allegedly taking the two boys to the river in Moama, on the NSW-Victoria border. The court heard how she allegedly told witnesses the night before the incident that she "had to drown my babies".

    #WheresTheBill: Congress on goose chase to find secret GOP health bill

    The House Energy and Commerce Committee is planning a markup on the draft legislation next week, possibly on March 8. House Ways and Means Committee Chairman Kevin Brady , of Texas, told reporters that there in fact was no final bill.
    Federal officials to announce indictments against seven Baltimore police officers

    Federal officials to announce indictments against seven Baltimore police officers

    Then they went to the man's home and stole $200,000 and a $4,000 wristwatch from a safe deposit box. All were arrested, suspended without pay and jailed overnight pending detention hearings Thursday.