- Establishes PSA Group as No.2 in Europe
- Joint venture to support brands’ development
- €2.2-billion transaction ‘unlocks shareholder value’
DETROIT, Michigan / PARIS, France – General Motors and PSA Group have today (March 6 2917) announced an agreement under which GM’s Opel/Vauxhall subsidiary and GM Financial’s European operations will join the PSA Group in a transaction valuing these activities at €1.3-billion and €900-million respectively.
With the addition of Opel/Vauxhall, which generated revenue of €17.7bn in 2016, PSA will become the second-largest automotive company in Europe with17% market share and “create a sound European foundation for PSA to support its worldwide profitable growth”.
‘FINE BRANDS, STRONG HERITAGE’
PSA board chairman Carlos Tavares told The Corner in a media release: “We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround.
“We respect all that Opel/Vauxhall’s talented people have achieved as well as the company’s fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall by capitalising on their respective brand identities.
“We know – having together created winning products for the European market – that Opel/Vauxhall is the right partner. We see this as a natural extension of our relationship and are eager to take it to the next level.”
“We’re confident that the Opel/Vauxhall turnaround will significantly accelerate with our support while respecting commitments made by GM to
‘MAJOR STEP IN ONGOING WORK’
Mary Barra, GM’s chairman and chief executive officer, weighed in with: “We are very pleased that, together, GM, Opel/Vauxhall, and PSA have created an opportunity to enhance the long-term performance of our respective.
“For GM this is another major step in the ongoing work that is driving our improved performance and accelerating our momentum. We believe this puts Opel and Vauxhall, long-term, in an even stronger position and look forward to our participation in the future success and strong value-creation potential of PSA.”
The transaction is believe to be another step in GM’s ongoing work to transform the company after three years of record performance and a strong 2017 outlook that will strengthen GM’s core business, support its continued deployment of resources to higher-return opportunities including in advanced technologies driving the future, and unlock significant value for shareholders.
A statement from Peugeot Citroën South Africa sent to The Corner read: “At this stage, it is too soon to comment as to how this deal will affect , therefore all operations will continue as they currently do.
The PSA Group and Opel will work closely together to guarantee the smooth transition. Once we have further information about South African operations, it will be communicated, as no timing has yet been given.”