General Motors searches solutions for its unprofitable Opel brand. The Detroit-based manufacturer is hoping to combine Opel operations with those of PSA Peugeot-Citroen, in a second phase of their partnership.
One of the options GM is considering is creating a joint-venture with the two French brands. This means that Opel is to be merged with Peugeot and Citroen. GM would have a 30 percent stake in the joint venture and would inject up to $10 billion into the new company.
The Americans will have to inject more founds than the French alliance because of the imbalance in annual revenues between PSA (25 billion euros in European sales) and Opel (with revenues of 17 billion euros).
By taking a 30 percent stake, GM would not have to consolidate Opel’s financial results, a big problem, considering the loss of the Russelsheim-based company, estimated at $1 billion every year, until 2021.
Invited to comment on the recent rumors, GM spokesman Selim Bingol, said in a statement: "We don’t comment on speculation. We are focused on earning the benefits from our alliance with PSA that we have identified."
15 Oct 2012
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