As Opel is slowly absorbed by the PSA Group (Peugeot, Citroen, DS), General Motors is expecting $5.5 billion from their sale of the German automaker. This move effectively takes General Motors out of the European market as Vauxhall, the British arm of GM, will be part of the sale.
Prior to this report, Peugeot acquired Opel for $ 2.3 billion to get the deal started. Afterwards, General Motors estimated that the sale would cost $4.5 billion. Chuck Stevens, chief financial officer of GM, spoke to Reuters and explained that the additional $1 billion is due to the associated costs of the deal. Opel meanwhile said that the deal will most likely be completed by the end of July. At the moment, it is pending regulatory approval from authorities.
With this deal, Peugeot will be getting six assembly plants, along with five other manufacturing facilities for parts. Peugeot also takes over the Opel engineering center, located at Rüsselsheim, Deutschland and will be taking approximately 40,000 employees. The company will also take over the Luton facility of Vauxhall. In the meantime however, Opel and Vauxhall products will continue to use GM technologies, from engines, platforms and other mechanical parts. A few years down the line, Opels and Vauxhalls will eventually be using Peugeot technologies and hardware.
In more recent news, the PSA Group was ousted out of the top ten biggest automakers by Daimler. With this deal, it is likely that the company may enter the top ten in the years to come. The PSA Group also hopes to raise sales of Opel and Vauxhall products after selling less than one million units last year.
Source: Reuters via