German to French brothers forever?

6 March 2017

French concern PSA acquired the brand Opel at General Motors for 2.2 billion euros

Today announced the completion of the transaction on the sale of Opel/Vauxhall. French concern PSA Group General Motors will pay a total of 2.2 billion euros. This will mean that PSA will be the second largest automotive company in Europe, with a market share of 17%. 

"We are proud that we will be able to join forces with Opel/Vauxhall and to continue further development of this great company," – said the representative of PSA and Carlos Tavares. "We respect all that has made people from Opel. We will keep the uniqueness of each brand." 

The purchase will enable the PSA Group to obtain significant economies of scale and synergy models and platforms. For the American brand, this deal is a good opportunity to continue the restructuring of the company to increase profitability and production development, including in the field of advanced technologies. 

French concern with the brand of Opel/Vauxhall gets all of automotive manufacturing and technology, six Assembly plants and five production components, one engineering centre in russelheim and about 40 thousand employees. GM retains an engineering centre in Turin, Italy. Opel will continue to receive payments from patents on intellectual property from GM. Pension liabilities will take over PSA. 

It now remains only to be patient and wait that the transaction will succeed. Perhaps Opel will return to the Russian market, having pleased fans of the German brand.