General Motors wants to sell its European subsidiary Opel to Peugeot. With such a deal, the corporations would provide a big surprise. What could be behind the deal?
Opel headquarters in Rüsselsheim
Tuesday, 14.02.2017
18:22 clock
Little time? At the end of the text there is a summary.
Well, they’re getting together. The negotiators of PSA Peugeot Citroën and General Motors sit down at a table to talk about the conditions under which the traditional French manufacturer could take over the equally traditional GM subsidiary Opel (and its British sister Vauxhall), The French can save themselves a thorough analysis of the company, its factories and blueprints in the development departments, because they already know many details: Since 2012, the car manufacturers have been working together very closely. Three series of SUVs and minivans are the result of joint responsibility. The development and logistics departments also regularly vote.
At first glance, it seems logical that Peugeot For General Motors the first point of contact is when it comes to putting Opel in good hands. Nevertheless, a lot of questions remain.
The time is surprising
For the first time since 1999, after a dry spell of more than 16 years, experts take Opel again as serious carmaker true. In the Compact and small car class The Russelsheimer are almost on par with the market leader Volkswagen 
, With the mocha, they even have a small off-road racer in their program, with which they buy the cutting edge of the overpowering giant from Wolfsburg.
In the middle class is already the Insignia at the start, also an electric car with a remarkable range as well as several models with talent for the wild meadow. There is therefore legitimate reason to hope that the eternal promises to finally write black numbers will soon be followed by deeds.
Despite massive setbacks such as the removal of the entire Russian market and the consequences of the Brexit decision for the UK’s largest single market, Opel’s operating loss in 2016 was only about $ 257 million, down from $ 556 million a year earlier , The profit zone, which was targeted for 2016, should now be reached in 2018.
It is quite possible that such a moment would be optimal to get a good price on the sale. For example, investment companies work when they buy companies and sell them again after a successful restructuring.
GM would lose its foothold in Europe
At GM, however, the situation looks different: Since 1929 Opel belongs to the parent company and forms – together with the sister brand Vauxhall – the mainstay of GM on the European market. Sure, this market is extremely competitive and the business cumbersome – but just giving up a market share of almost six percent is difficult to justify business.
For PSA boss Carlos Tavares, in turn, the question arises, why he should reinforce just in an area that sooner or later belongs to the discontinued models. The money would be better spent in companies dealing with future technologies in the field of electromobility or self-driving cars. So much money to dance on both weddings has PSA but not.
What appeals to those involved in the business, therefore, does not reveal itself at first glance. Especially General Motors Also not just in the reputation of being a particularly uncomplicated negotiating partner. Once before, the GM bosses had thought about selling Opel. That was in 2009, after Opel Low point of a long downturn had reached.
The was partially indebted by the parent company itself: Imagination in the product planning, lack of understanding for the wishes of European customers, and the cannibalization by the low-cost brand Chevrolet Opel had led to the brink of ruin – and actually beyond.
GM; Peugeot
Finally, in the summer of 2009, after long poker with the Austrian-Canadian supplier Magna, the federal, state, GM, and US Treasury had agreed on a rescue plan. But just before the signing of the contract, the GM people backed down – and since then have been transferring money to Rüsselsheim year after year to make the turnaround.
You a piece of me – me a piece of you
Three years later, in 2012, they finally made the alliance with the PSA Group. The ambitions went so far that GM on this occasion equal to about 420 million dollars, a share package of seven percent took over and became the second largest shareholder after the Peugeot family. However, the friendship quickly collapsed again, because the French at the same time the Chinese carmaker Dongfeng brought in the house.
The negotiations currently underway would only make sense if PSA and GM would immediately decide on a radical step: the merger of the two companies. “It is not excluded that at the end of the negotiations a cross-stake will be announced,” answers answered Stefan Bratzel from the Center of Automotive Management of the College of Business in Bergisch-Gladbach half seriously. “Economically, that would even make sense,” adds the expert after a moment’s thought. “PSA would suddenly have a foothold in the US and GM would have effectively strengthened its in Europe.”
However, such a cross-hold would only be attractive to GM if the group received significantly more voting weight than Dongfeng’s Chinese, who own 14 percent of the PSA group. The French state and the Peugeot family would have to jump over a long shadow, because their influence would definitely disappear. But they have not succeeded in this step in the past.
Summarized:
The French PSA Group is negotiating with General Motors about the purchase of Opel. But really can hardly explain what the French actually want with the Rüsselsheim carmaker. The money would be much better invested in future technologies. Such negotiations only make sense if both companies could decide on a cross-shareholding.