General motors selling its european business in 2 3 billion deal
You're referring to the recent news about General Motors (GM) selling its European operations to French automaker PSA Group (Peugeot S.A.)!
Yes, it's true. On March 6, 2017, GM announced that it would sell its European operations, including its Opel and Vauxhall brands, to PSA Group for approximately €2.2 billion (around $2.3 billion USD). The deal is expected to be completed by the end of 2017.
Here are some key details about the deal:
- Sale of Opel and Vauxhall: GM will sell its Opel and Vauxhall brands, including their respective manufacturing facilities, research and development centers, and distribution networks.
- PSA Group's expansion: The deal marks a significant expansion for PSA Group, which will become the second-largest automaker in Europe, with a combined market share of around 17%.
- Job security: GM has committed to maintaining employment levels at Opel and Vauxhall for at least three years, ensuring that around 34,000 employees will continue to work for the companies.
- Manufacturing and R&D: PSA Group will inherit GM's European manufacturing facilities, including those in Germany, Poland, and the UK. The company will also gain access to GM's European research and development centers.
- Brand synergies: The deal is expected to create synergies between the two companies, particularly in areas like purchasing, manufacturing, and distribution.
The sale is seen as a strategic move by GM to focus on its core markets in North America and China, while PSA Group aims to strengthen its position in Europe and expand its global presence.
What do you think about this deal? Do you have any questions or concerns about the implications for the automotive industry?