The PSA Groupe is in talks with General Motors to buy the American conglomerate’s Opel brand. The news, which was a mere rumour just last week, has now been confirmed through various sources. PSA is the French automaker that produces Peugeot, Citroen and DS products. It sold just over 3 million vehicles globally last year, compared to GM which sold just under 10 million. Opel itself sold 1.16 million cars in 2016.


So why would GM sell Opel, you might wonder, a company it has owned on and off since 1931. Well it appears GM CEO Mary Barra is keen on streamlining her company and resizing it into a smaller, more agile entity. Gone are the days when being number one was an accolade. Selling to PSA would give GM plenty of cash (last financial year Opel broke even at around US$200 million, so it’s no longer making losses). It would also give GM some perspective and focus which would be redirected mainly at the Chevrolet brand, as well as Cadillac and Buick. The latter two are popular in China and Opel is not.


For PSA would mean going from 3 million to 4 million sales and taking the number two spot away from Renault in Europe. Globally though PSA is still struggling and is only ranked in tenth spot in sales. In South Africa for example, the Citroen brand was pulled out of the market late last year because of lacklustre sales.

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