PSA to maintain Opel’s four German factories – report

PSA to maintain Opel’s four German factories – report

The news about PSA Group in talks with General Motors over the purchase of the latter’s European business surfaced last week. Size and scale must be on the mind of the French looking to take over Opel and Vauxhall, and Europe’s overcapacity is a known issue. Should the takeover succeed, surely some factories will have to be sacrificed?

Well, according to reports, Opel’s German factories will survive. German Sunday paper Bild am Sonntag reported that the PSA Group, which makes Peugeot and Citroen cars, has pledged to the German government to continue operating all four of Opel’s plants in the country.

It said that PSA’s general counsel Olivier Bourges told two deputy ministers and an adviser to Chancellor Angela Merkel that Opel would continue as a separate entity within the group and that no German sites would be closed. No sources were specified. The publication added that the takeover deal will likely be signed by March 9 at the 2017 Geneva Motor Show.

However, things do not look so good for Opel’s sister brand Vauxhall, which is based in the UK. Two sources close to PSA have told Reuters that job and plant cuts were part of the PSA-GM talks, with the two British sites of Vauxhall in the front line. PSA’s CEO will meet British PM Theresa May to discuss the deal amid concern that Brexit could put Vauxhall sites at a disadvantage to Opel’s.

The wire service points out that Germany accounts for about half of GM Europe’s 38,000 staff, while there are 4,500 staff in Britain. Spain and Poland also host Opel factories. A PSA spokesman confirmed that a meeting between PSA reps and German officials had taken place last week. Opel declined comment.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • alldisc on Feb 20, 2017 at 4:49 pm

    Easy. Abandoned Vauxhall and let Proton collaborate. We may see Suprima as the Vauxhall Astra. But Vauxhall will surely will want to change the dashboard design which is like 15 years ago design

    Like or Dislike: Thumb up 2 Thumb down 3
  • Mikey on Feb 20, 2017 at 5:01 pm

    Ever wonder why PSA is FAST to tie-up this deal compare with P1. Kunta, please borrow your expertise in this comment. TQ.

    Like or Dislike: Thumb up 5 Thumb down 2
    • Lee Kum Kee on Feb 20, 2017 at 7:20 pm

      now why would you imagine that? trolling p1/p2 into other articles, its getting stale…

      Like or Dislike: Thumb up 3 Thumb down 0
      • Mikey on Feb 21, 2017 at 11:50 am

        LKK, your reply are worst than stale. U have use the one liner over & over again without even border to put in some concerted effort to change your comment.

        Don’t be lazy & start making real comment if U can. Am sure U know PSA is one of the shortlisted candidate to partner P1 & WHO is bringing P2 into this equation ?!

        Like or Dislike: Thumb up 0 Thumb down 0
  • tolonglah ambil proton kami rakyat susah dengan adanya proton sebab kereta lain jadi manyak mahal lo

    Like or Dislike: Thumb up 1 Thumb down 1
  • Sri Vijay I on Feb 20, 2017 at 8:30 pm

    afraid Vauxhall having same fate as SAAB auto soon. sigh

    Like or Dislike: Thumb up 3 Thumb down 0
  • Maqsiat Club Attendant on Feb 20, 2017 at 8:44 pm

    Union Unite demands UK assurance to Vauxhall workers no job cut

    Like or Dislike: Thumb up 2 Thumb down 0
  • Semi-Value (Member) on Feb 21, 2017 at 8:47 pm

    both also got image problem.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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