general motors sells european brands to psa
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

General Motors sells European brands to PSA

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleGeneral Motors sells European brands to PSA

Paris - Arab Today

General Motors (GM) is selling its loss-making European car business, including Germany’s Opel and British brand Vauxhall, to France’s PSA group in a deal that realigns the industry in the region.
With the €2.2 billion ($2.33 billion) deal announced Monday, GM is giving up a foothold in the world’s third-largest auto market, where it has not made a profit in 18 years despite multiple turnaround efforts.
For PSA, which already makes Peugeot and Citroen cars and has just recently reshaped its own business, the acquisition will turn it into Europe’s No. 2 automaker after Volkswagen, making 5 million cars a year.
Carlos Tavares, the CEO of PSA, said the deal was “a game-changer for PSA.” GM chief Mary Barra said it was a “win” for both sides.
PSA will join with French bank BNP Paribas in the purchase, which foresees taking over 12 manufacturing facilities that employ about 40,000 people, according to a joint statement by the companies.
Amid concerns about job losses in multiple countries, Tavares promised to keep existing GM commitments to workers.
General Motors Co. will keep its manufacturing center in Turin, Italy. GM and PSA, which have had joint activities in the past, will continue to collaborate on electric car technologies and maintain existing supply agreements on some Buick models.
The purchase marks a major turnaround for PSA, bailed out just three years ago by Chinese investors and the French state. CEO Tavares hopes to parlay his success at PSA to similar savings at Opel, cutting costs through scale and better use of factory capacity.
Shares in PSA were up 4 percent at €19.82 in early trading Monday, suggesting investors find the terms of the deal positive overall for the company.
For GM, the agreement seems to suggest that Barra decided to focus on profits over market share. GM has not turned a full-year profit in Europe since 1999.
“This was a difficult decision for General Motors but we are united in belief that it is the right one,” she told reporters in Paris.
She noted Opel-Vauxhall would have broken even in 2016 had it not been for Britain’s decision to leave the EU, which caused a plunge in the value of the pound.
Asked whether the arrival of the Trump administration played a role in GM’s decision to sell, Barra said GM looked at the overall “regulatory, geopolitical and customer” landscape before making its decision.
GM could redirect the money it has been spending in Europe toward new products and services, such as self-driving cars and ride-hailing services, as well as pension obligations and an ongoing share buyback program.
Western Europe is the No. 3 auto sales market, behind China and the US. Opel and Vauxhall last year sold just under 1.2 million vehicles, amounting to only 5.6 percent of the market, according to GM’s full-year earnings release. GM has recently shown a willingness to pull out of unprofitable regions — it abandoned Russia in 2015 as that country’s economy fell into recession.
The deal, subject to regulatory approval, is expected to be completed at the end of this year.
The move would give PSA access to technology and a larger scale to spread out engineering and other costs.

Source: Arab News

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

general motors sells european brands to psa general motors sells european brands to psa

 



Themuslimchronicle, themuslimchronicle

GMT 06:29 2018 Sunday ,21 January

500 new trainees join US-backed Syria border force

GMT 10:31 2017 Sunday ,20 August

the history of solar eclipses

GMT 16:36 2017 Tuesday ,05 December

Gulf Air launches Bahrain Tourist Visa Service

GMT 03:19 2012 Saturday ,15 September

FREEDOM

GMT 06:56 2014 Friday ,12 September

No winners in Gaza

GMT 22:30 2012 Monday ,16 July

Sudan ruling party says protests \'ridiculous\'

GMT 07:09 2012 Wednesday ,20 June

Sudan and South Sudan border tensions

GMT 12:02 2012 Tuesday ,17 April

What the Living Do

GMT 17:33 2017 Saturday ,25 March

Caceres recalled to Paraguay squad for Brazil clash

GMT 17:18 2017 Tuesday ,19 December

Bahrain weather forecast

GMT 09:35 2017 Sunday ,29 October

Actress Annabella Sciorra accuses Weinstein of rape

GMT 13:43 2017 Thursday ,16 November

People Magazine names Blake Shelton 'sexiest man alive'

GMT 18:10 2017 Monday ,17 April

GCC Secretary-General Condemns Syria Blast

GMT 13:15 2017 Wednesday ,15 February

Inherited the talent to draw on glass

GMT 14:35 2017 Saturday ,25 March

Dar Essalam to Host Two Golf Competitions

GMT 07:22 2016 Saturday ,09 July

Gunfire near presidential palace in South Sudan

GMT 10:42 2017 Wednesday ,16 August

Chinese teen Internet addict dies

GMT 13:51 2017 Thursday ,21 September

King Salman meets with former Turkish president

GMT 09:31 2017 Wednesday ,29 March

NPRA holds training course

GMT 08:18 2017 Thursday ,14 December

Twitter makes 'tweetstorms' easier

GMT 17:19 2012 Thursday ,12 January

New electric-car racing championships
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle