GM Completes Sale of Opel to PSA Group
General Motors has officially completed the sale of its Opel division to France’s PSA Group, effectively shedding GM’s European division. The automaker says that the sale of Opel to PSA has been done to improve its financial performance and “strengthen its global enterprise and position itself for the future.”
Dan Ammann, president of General Motors, says that the sale of Opel to PSA will enable the company to put its resources toward projects that have higher-return opportunities and new vehicle tech. Originally announced earlier this year, General Motors’ sale of Opel to PSA Group is valued at around $2.3 billion. The sale also includes the unloading of GM Europe’s financial division, which will be acquired by PSA and BNP Paribas. That deal is expected to close later this year and is still subject to regulatory approvals.
As a result of acquiring Opel and its British subsidiary Vauxhall, PSA is now the second larger automaker in Europe right behind the Volkswagen Group with a 17-percent market share in its home continent. The sale of Opel to PSA Group won’t affect GM’s Buick division too much as the German automaker will continue to produce cars for General Motors, despite no longer being part of the company. Vehicles such as the upcoming Regal and Regal TourX will continue to come out of Opel’s Russelheim facility and the automaker is expected to produce them well past 2019.