PSA buys GM Europe for £1.9bn

 

PSA owners of Peugeot and Citroen cars has struck a deal of €2.2bn (£1.9bn) to buy General Motors’ European unit including Vauxhall.

Loss-making GM Europe has UK factories at Ellesmere Port and Luton which employs 4, 500 people.  With GM’s Opel and Vauxhall operations,  PSA Group jumps to become the second largest carmaker in Europe with a 17 per cent market share, behind Volkswagen.

Carlos Tavares, chairman of PSA’s managing board, said:” We are confident that the Opel/Vauxhall  turnaround will significantly accelerate with our support while respecting the commitments made by GM to the Opel/Vauxhall employees.”

 

PSA hopes to return Opel and its Vauxhall brand to profit and expected to make savings of £1.47bn per year by 2026.

PSA has said several countries are reluctant to buy French cars and the Opel and Vauxhall brands will help them expand into new markets.