Peugeot Citroën’s planned purchase of Opel and its operations from General Motors is believed to be largely a done deal, with only minor details remaining.
According to Bild, the details will be announced on the first of March. It’s thought that both GM and PSA want to sign the papers before the Geneva International Autosalon, where Opel will introduce the new Insignia sedan and PSA plans to show the new DS7 mid-size crossover. The deal does not include Australia’s once-glorious-but-now-gutted Holden brand.
FAZ alleges a purchase price has been agreed upon, but licencing fees remain unsettled in light of PSA’s particular interest in the Opel Mokka and Ampera-e (the Euro Chevrolet Bolt). Similar complications arise when looking at the production offset required in Rüsselsheim for the Insignia-based Buick Regal and Holden Commodore. This renders the purchase price a mere symbol of the transaction, with the deal’s real value buried in the minutiae.
Despite the ongoing negotiations, it’s believed both sides are deeply invested in the success of this transaction, with neither party particularly interested in walking away at this point. GM has already put a $2 billion price tag on its European operations, while PSA CEO Carlos Tavares has worked to gain the trust of both German Chancellor Angela Merkel and the labor union.
“Tavares communicated convincingly in the talks that he is interested in a sustainable development for Opel-Vauxhall as an independent company,” Opel works council Chairman Wolfgang Schaefer-Klug said in a joint PSA-Opel release. “We are ready to explore further the chances of a potential coming together.”
PSA has promised to honor an employment guarantee until the end of 2018 for half of Opel’s 38,000 European workers, but it’s unclear what will happen to the other half. That question may be irrelevant if the new Franco-German axis of automobiles goes on a rampant run of profitability.
[Image: Opel]
So, what is the bottom line? Will there be a Buick or not?
Sure there will be…and they’ll all come from China.
Goodbye Holden. After some great Sports Sedans by Walkingshaw, the official tuners. Now nothing. ” Gutted” sounds appropriate.
Sales will freefall. Colorado does not sell, so the Colorado cannot do a ” Ranger” as this point.
Probably shutter the whole operation in 2 yrs.
Most buyers will turn to the Japanese / Korean and European( non Ford/ GM ) offerings
Will they? Will they turn?
Or have they already?
Waaaa! They’re not making Aussie special cars anymore! Nevermind that we bought the Corolla instead of the Commodore or Falcon! Its their fault for trying to sell us similar cars to what we are clearly interested in based on what we buy!
@little troll,
They are making Aussie ” special cars” Holden in existence or not
Did Opel in Europe ever get the big small block v8’s that the memorable Holden’s sported? And what does Ford have to do with this? They are making money in Europe.
Vauxhall did a 620hp HSV tuned Holden Commodore( Vauxhall VXR)
Ford are just getting a profit now, after years of losses. Wait Brexit is upon us! Gloom has come back
In the sixties and seventies the Opel Diplomat A and B (2 generations) were available with a Chevy V8. Initially the 283 and later the 327.
The Diplomat was Opel’s top model sedan, although there also was the very rare Diplomat A coupe. The Diplomat B with the Chevy 327 was seen as a Mercedes-Benz S-Class (W116) competitor, certainly the long (wheelbase) Diplomat version. Much cheaper though !
Opel’s own top engines in the seventies were inline-6 engines with fuel injection (also available in the Diplomat B, for example).
Li’l Al with the big grille,
Actually, GMH developed their own small block with the 253 and 308 90 degree V8 as opposed to the tighter small block GMs.
The VT was the last Commodore to run the Aussie V8. It was more economical at this time for GM to run one V8.
The 3.6 SIDI engine that is as common as dog sh!t is mainly an Aussie design. Caddy was also involved. SAAB ran a turbo variant of this engine.
Where GMH and even Opel shine is chassis and suspension design.
The original grey block in line 6 that was the basic engine from the FJ/X to the EJ was a Canadian designed engine. The Holden Red engine (Aussie) design in line 6 was used from the EH right through until the VL Commodore (which was based on the Opel Cadet). The VL had what could arguably be the finest in line 6 in a cheap family hack. It was a Nissan R30 with sequential multipoint injection. You guys in Detroit were mainly using throttle body EFI.
GM will not close down its Aussie Design Centre. Its to valuable to GM in the design of the best GM chassis. Especially for the Asian market.
What BOF GMs from the US are global? The most competitive BOF GM is the Colorado and its wagon sibling. From Brazil, Thailand and Australia.
GM US is very reliant on its market which is shrinking proportionally to the global market.
CAFE, chicken tax, technical barriers, etc has created a very unique US market. The consumer will pay the price.
Honda and Toyota have never had much of a presence in Europe for various reasons. I wonder if the powers that be have determined that preferences of the American market and Asian/Chinese market are more aligned than the preferences of the American and European markets. If that’s the case, it makes sense for PSA to focus on the European market while GM focuses on North American and Asian markets.
@jmo
PSA is trying to break into the Asian market, that is why they want to buy Proton.
bottom line is GM failed repeatedly year after year in Europe. first Chevy was pulled after a massive marketing waste of money and now the cashing out of Opel. this only proves incompetency…and of course a windfall for the banksters. I wonder how much these vultures are grabbing for their “advice”?
@Buickman
Total incompetence from day one by GM NA. Current incompetent CEO Barra has to go before, the Chinese start building Silverado’s for the NA market.
Chevrolet was the new brand for Daewoo who were starting as a Korean new guy on the block.
They hoped that brand recognition would get them sales in the ‘budget’ end of the market.
While there was some recognition of the brand from US cultural media – big 50s sedans, Corvettes and the likes – it wasn’t particularly well known for bread and butter cars at the start.
However all they did was cannibalise sales from the lower end of the Vauxhall range, especially as the Cruze was similar to an Astra, and the Captiva / Antara were badge engineered same car, as was the Volt and Ampera. The Vectra was able to sleep easy though, as the Epica was a flop…
Buick will probably be mostly Chinese designed since China is the biggest market for Buicks. Europe is not a good market for continued growth. Not that it is a bad market but there are no large gains in sales to be had in Europe versus China and parts of Asia.
@Jeff S
Given what is happening Buick could be Chinese owned and built.
What model is that cute yellow hatch, a Mokka?
That’s their version of the Chevy Bolt.
The $2B sale proceeds. Increased R&D for improved small and midsize product line? Strengthening a shaky pension plan? Returning some money to shafted bond Holders? Investment in improved supplier relations with improved materials and components? Upgrades to assembly lines and aging plants?
Hell No! Bonuses for top floor occupants at the Ren Cen. 250 new luxury Cadillac Coffee and spa locations in hip urban centers. ……and wait, a new fancy advert campaign to stress that this time is really the new and improved GM, we really mean it!
Hopefully the Ad campaign will explain how Cadillac is as good as the European luxury makes, but GM was utterly incapable of selling competitive cars at any price point in Europe for the past 15 years.
Throw in Cadillac as a sweetener , so they can buy both as a job lot.
@CaddyDaddy
Comment of the day right here.
Unfortunately, I’d bet you’re 100% correct.
Remember PSA bought Chrysler Europe, now GM Europe, guess what’s next?
well, Ford had an independent French subsidiary until 1954, Ford SAF:
https://en.wikipedia.org/wiki/Ford_SAF
then Ford sold it to Simca and began selling German and British cars in France. in 1970, Simca was sold to… Chrysler Europe.
Peugeot has already sunk Citroën, Simca and Talbot. now they’re ready to do the same with Opel, whose sole good car, the Adam, will probably be phased out to avoid competition with the DS3. except for the Corsa, which still sells well, all the other models are so bad they will likely die for themselves.
Carlos Tavares… the name sounds familiar. Didn’t he work for the other Carlos – Ghosn? There wasn’t room at Nissan-Renault for two Carloses, so he went to PSA… and now look what he’s up to!
Ghosn was Tavares’ boss at Renault during the 90’s. They are both long time Renault guys.
Well, there goes any chance to get an Adam over here (in the US).
Good riddance. I had the pleasure of owning one for a few years. And there were numerous others in my extended family throughout the 80s-90s-00s. While they used to be somewhat nicer than the US Chevy models, their reliability was bad. My own model was plagued with issues and was also painfully underpowered. PSA will at least give some character to the brand, something it was lacking before.
And maybe, finally, Buick will switch from rebranding to actual auto design.