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General Motors sells Opel and Vauxhall to Peugeot

 
 
General motors have sold its car making companies Opel from Germany and Vauxhall from Britain to the French Car maker Peugeot in lieu of dropping sales since late 1990s. The deal costed $ 2.3 billion for General Motors  The move has placed Peugeot at the second position of largest car manufacturers in Europe, right after Volkswagen. It might demarcate the existing jobs of the employees of the sold companies as they had made a jaw dropping loss of $26.8 billion since last calculated in 1999. PSA is likely to take over 12 manufacturing facilities that employ about 40 thousand people. Though Tavares clearly mentioned “We don’t need to shut down plants,”. 
 

As was analysed by the President of General Motors, Dan Ammann, the pollution norms are about to get stricter in Europe and a switch to electric vehicles demand huge amount of investments for innovation and infrastructure. Therefore, to save themselves from the atrocities of the coming time, they made a decision to sell out their brands, and might do so again if the other international businesses can't be fixed. Now the ball is in Peugeot's court, whose CEO, Tavares claims the decision to be a game changer for them. 

French bank BNP Paribas will aid PSA Group to run GM's European businesses that they now possess while GM is likely to use the proceedings they beget from the deal to develop autonomous cars, ride-hailing services, and pension obligations.