PSA Intends To Keep Opel 100% German If Deal Goes Through
PSA Group boss Carlos Tavares wants for Opel to remain a German brand even if they are to be acquired from General Motors.
According to Autonews, Tavares is also open to maintaining Opel's current management structure if the deal goes through. Both PSA and GM are trying to win German support for selling Opel to PSA, despite concerns that an eventual deal could lead to job losses as well as a massive overhaul of the German automaker.
Tavares will eventually meet with German Chancellor Angela Merkel as well as with Opel's German stakeholders, said a PSA spokesman.
His pitch will include "maintaining Opel as a German company in full compliance with German labor law," whereas the deal itself will be presented as "an alliance between a French carmaker and a German carmaker."
As for GM, they're saying that selling Opel to PSA would position the automaker to grow and provide better long-term job security than it does in the present, as reported by Bloomberg. Privately, both GM and PSA think that Opel would actually face sharper cuts if it continued under GM ownership.
In a memo from GM CEO Mary Barra, she stated that a deal with PSA would be good for GM's future growth plans, shareholder value and for the longevity of Opel's German operations, while adding that the deal would also put both Opel and PSA "in a position to improve their standing in the fast-changing European market."
GM and PSA are hoping to get things done before next month's Geneva Motor Show.