Following Ambassador, Peugeot set to acquire Opel, Vauxhall

The two companies had been bickering about who should be responsible for footing the bill.

Reports suggest that business secretary, Greg Clark, has held phone conversations and face-to-face talks with both GM and PSA Group executives in recent weeks and prime minister, Theresa May, has also raised the matter with the French prime mister and PSA Group chief, Carlos Tavares.

Both GM and PSA, which owns the Peugeot and Citroen brands, declined to comment.

Around 4,500 employees work in Vauxhall UK production sites of Ellesmere Port in Cheshire and Luton.

Opel had hoped to return to profitability by 2016, but the slide in sterling following the European Union referendum last June contributed to its 257m euros annual loss.

Acquiring Opel also means that PSA will become the owner of the Vauxhall brand in Great Britain, which has prompted widespread concern over potential job cuts.

"All the western carmakers have been making their money in the Chinese market these past few years", said Marc Staudenmayer of the Advancy management consultancy.




In a bid to protect its Buick and Chevrolet brands, GM has not allowed Opel to expand outside Europe.

"Opel wasn't allowed to do that, which explains its underperformance since 2005".

GM reported a loss of $257m (£209m) from its European operations last year - its 16th straight year of losses. Detroit-based GM, which came close to selling Opel to Magna (MG.TO) in 2009, has faced investor pressure to offload its struggling European arm and focus on raising profitability rather than chase the global sales crown now held by VW.

One of the key negotiating points is how PSA can achieve about 2 billion euros (S$2.972 billion) in savings from a deal, said one of the people.

Carlos Tavares on February 23.

The acquisition offered an "opportunity to create a European auto champion" and quickly exceed 5 million annual vehicle sales, Tavares told analysts as he presented full-year earnings.

Detroit-based GM has been pressing for a deal barring those legacy Opel models from markets including China, Russia and Latin America, sources have said.

Related news:

Hot News

isis-killer-beheading-video-story-top Hundreds gather at Denver rally to support President Trump
Mar 05, 2017 - 01:18
But there was nowhere near the 6,000 people Skoda said he expected on his permit for the rally - maybe, possibly, a sixth of that. The Star Tribune reports there were minor scuffles during the rally, which were quickly diffused by other protesters and police.

isis-killer-beheading-video-story-top Premier League's Crystal Palace FC to Hold Training Camp in Morocco
Mar 05, 2017 - 01:14
Pulis has yet to pay Palace any of the £3.7m he was ordered and is believed to be considering another appeal. He gets criticism at times for the way his teams play, but for me he is a tactical genius.

isis-killer-beheading-video-story-top Remy Ma Explains Why She Went After Nicki Minaj on Diss Tracks
Mar 04, 2017 - 01:07
According to Remy , Minaj attempted to keep her away from events and tried to plant stories about her lackluster album sales. But she has one thing left to say: "This person just based on what I'm witnessing is not a nice person".

Janet Yellen's room for manoeuvre is shrinking
Mar 04, 2017 - 01:04
Already, though, traders in futures markets have put the probability of a rate hike at 75%, according to data tracked by the CME Group.

isis-killer-beheading-video-story-top The Legend Of Zelda Breath Of The Wild: Nintendo Switch vs
Mar 04, 2017 - 01:02
Let us know in the comments! If you're one of those players who likes to go in prepared, then this is excellent news. They're flawless for your morning commute - solving a new shrine on the way to work could be your new daily routine.

Abercrombie & Fitch Company (NYSE:ANF) Highest EPS Projection At $1.02
Mar 04, 2017 - 01:00
Its segments include Abercrombie, which includes the Company's Abercrombie & Fitch and abercrombie kids brands, and Hollister. Abercrombie & Fitch Co. on 11/18/2016 reported its EPS as $0.02 with the analysts projecting the EPS of the stock as $0.21.

isis-killer-beheading-video-story-top What Analysts Suggest About Kite Pharma Inc (NASDAQ:KITE)?
Mar 04, 2017 - 01:00
Highline Capital Management L.P. bought a new stake in shares of Kite Pharma during the third quarter valued at about $28,232,000. Following the transaction, the chief operating officer now owns 92,995 shares of the company's stock, valued at $4,729,725.70.

isis-killer-beheading-video-story-top Nicola Sturgeon would lose independence referendum, says Scottish Conservative leader Ruth Davidson
Mar 04, 2017 - 00:59
And she insisted people in Scotland wanted a government focused on the "issues that matter to them day to day". In return the United Kingdom government has so far been one of obstinacy and intransigence.

Lawmakers Hunt Around the Capitol for Obamacare Repeal Bill
Mar 04, 2017 - 00:58
House Republicans aren't backing down from their Obamacare repeal plan that sparked backlash from the party's conservative wing. Rand Paul now says the same Republicans are trying to double down on their efforts in secret.

83-year-old is Dallas County's 8th flu death this season
Mar 03, 2017 - 03:16
The Oklahoma City-County Health Department recommends flu vaccinations and hand hygiene to avoid the dangers of the flu. The county says while children under six months old can not get a flu shot, there are other ways to protect them.

No Changes Coming to Apple Charging Cable for iPhone 8
Mar 03, 2017 - 03:13
Retaining the Lightning port also means that Apple gets to keep generating income from its lucrative MFi program . Three phones are thought to be in development using 4.7-inch, 5.5-inch and 5.8-inch form factors.

Governor Cuomo Traveling to Israel This Weekend
Mar 03, 2017 - 01:33
Szegedin said that the rise of anti-Semitic acts throughout the state was point of discussion and is a concern for Kiryas Joel. Headstones were toppled at the Waad Hakolel Cemetery, also known as the Stone Road Cemetery, in Rochester, N.Y.

isis-killer-beheading-video-story-top The Legend of Zelda: Breath of the Wild patched with DLC support
Mar 03, 2017 - 01:28
Breath of the Wild is more than just a Zelda title, it's the newest and most interesting take on the world of Hyrule. " The Legend of Zelda: Breath of the Wild " makes it debut this Friday, March 3rd, for gamers everywhere.

isis-killer-beheading-video-story-top Fatal Yemen Raid Yielded Intel On 'Hundreds' Of Al-Qaida Operatives
Mar 03, 2017 - 01:18
Owens, 36, was killed in the raid on a branch of al Qaeda in the Arabian Peninsula, or AQAP, in al Bayda province on January 29. He had no immediate word on any casualties.

isis-killer-beheading-video-story-top Get ready for the Nintendo Switch
Mar 03, 2017 - 01:15
Nintendo Switch games are coated in disgusting chemicals that you should not put near your mouth, the company has confirmed. And apparently they taste terrible , to the point where you want to but can't forget the nasty taste left in your mouth.