Belfast Telegraph

Peugeot owner looks at General Motors deal

By Ben Woods

PSA Group said it could buy Vauxhall and Opel from General Motors (GM) in an agreement that would transform Europe's car market.

The owner of Peugeot is in talks over a "potential acquisition" of GM's European car business, as it explores "strategic initiatives" aimed at boosting profits and cutting costs.

However, it said there could be "no assurance that an agreement will be reached".

GM employs around 35,000 people in the UK under the Vauxhall brand, including 4,500 staff at plants in Ellesmere Port and Luton.

A spokesperson for PSA said it has been working with GM on three projects across Europe since 2012, which delivered "substantial synergies" for both groups.

"Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well.

"PSA Group confirms that, together with General Motors, it is exploring numerous strategic initiatives aiming at improving its profitability and operational efficiency, including a potential acquisition of Opel. There can be no assurance that an agreement will be reached."

Belfast Telegraph

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