Published: Wed, August 02, 2017
Hi-Tech | By Ellis Neal

PSA completes acquisition of Vauxhall/Opel

PSA completes acquisition of Vauxhall/Opel

PSA's acquisition of GM Financial's European operations is underway, subject to validation by regulatory authorities.

"We will stay on the current path and continue to gain strength as part of the Groupe PSA", Lohscheller said.

"Groupe PSA today announces the closing of the acquisition of GM subsidiaries Opel and Vauxhall, a project that was signed on 6 March 2017", PSA said in a statement released late yesterday announcing that the €2.2 billion ($3.1 billion) deal was finally done. "I am looking forward to the new task and to working together with the management team to implement a successful future plan for the benefit of all 38,000 Opel/Vauxhall employees and its stakeholders".

"Opel will remain German and Vauxhall will remain British". "This transaction allows us to sharply focus our resources on higher-return opportunities as we expand our technical and business leadership in the future of mobility".

The £1.9bn deal will see the enlarged PSA Group become the second-largest automaker in Europe, with a 17 per cent market share - beaten only by the VW Group. Only hints of the agreement between Groupe PSA and GM have been revealed - some of them in filings to the US Securities and Investments Commission - to say how the European empire will be carved up over time. The Opel and Vauxhall teams will present this plan in 100 days and will ensure its execution, boosted by synergies generated by the new Group, estimated to circa 1.7 billion euros per year in the mid term. PSA acquired General Motor's European divisions and financial services unit for around 2.2 billion euros (2.5 billion USA dollars).

Opel's first model shared with PSA, the Crossland X subcompact crossover, has been available at dealerships since the end of June.

The move means the GM has pulled out of Europe altogether, and has also divested from South Africa, while the Williams Hunt Group will take over local distribution of the Opel brand from 2018 onwards. The successor of the Opel Combo light commercial vehicle will come to the market next year and in 2019 the next generation of the Corsa subcompact will be launched with PSA technology.

However, although GM is selling Vauxhall-Opel, it still plans to collaborate with its former European division on future models for the Buick and Holden brands, plus future electric cars.

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