UK's Theresa May spoke with GM CEO about deal

PSA Group agreed to buy General Motors' Opel unit in a transaction valued at 2.2 billion euro (S$3.29 billion), creating Europe's second-largest carmaker in a bid to better compete in the region's saturated market.

Together, the entities will form Europe's second-largest auto company, sitting behind the Volkswagen Group and ahead of the Renault-Nissan Alliance.

"Now that General Motors has disposed of its United Kingdom sites, our focus switches to working with the new owners to persuade them of the evident merits of our plants and this excellent, loyal workforce".

France's CGT union late Friday said the deal would be "very lucrative for PSA shareholders" and issued a warning to the PSA and Opel employees. The so-called Brexit vote led to a sharp decline in the value of the pound, undercutting Vauxhall revenues and hiking the cost of imported parts used in its British factories.

GM has said that selling off Opel and Vauxhall will help solidify its core business and assist in deploying resource material to high-end businesses dealing in futuristic and advanced technologies. The PSA Group also purchased GM Financial's Europe operations in partnership with BNP Paribas for €0.9 billion.

Carlos Tavaress, chairman of the managing board of PSA, said his company would respect existing brand identities and "help accelerate [Opel's] turnaround", following its £200m loss past year.

US President Donald Trump seeks enormous increase in defence budget
As President Trump prepares for his first Congressional address tomorrow night, speculation about his budget priorities looms. Trump's prescription is to let Obamacare "be a disaster.because we can blame that on the Democrats and President Obama".

GM Europe has not made a profit since 1999 and the deal has raised fears about job losses at Vauxhall. PSA went from net losses starting in 2012 to profit in 2015, and generated 2.7 billion euros in cash in 2016.

The deal includes the GM-owned brands Opel, which is made in Germany, and Vauxhall, from Britain. The combined company could make 5 million cars a year.

Commenting on the agreement, PSA head Carlos Tavares says that the group is proud to join forces with Vauxhall/Opel and deeply committed to continuing to developing the company and accelerating its turnaround.

The Opel deal is an aggressive move by Mr Tavares.

The planned takeover of the Opel division by PSA, which owns the Peugeot and Citroen brands, was unveiled in the middle of February. The obligations with respect to the German Actives Plan and these smaller plans of Opel/Vauxhall will be transferred to PSA.


Popular
  • Cleveland Cavaliers players, coaches react to news of Kevin Durant's knee injury

    Cleveland Cavaliers players, coaches react to news of Kevin Durant's knee injury

    NBA MVP Stephen Curry led the scoring for the Warriors with 25 points, seven rebounds and four assists. These are the things you do to acquire a generational superstar, even when you already have one.
    Rickie Fowler lurking behind Palmer, Bryan after Round 2 — Honda Classic

    Rickie Fowler lurking behind Palmer, Bryan after Round 2 — Honda Classic

    Former Scottish Open champion Rickie Fowler is back into the world top 10 after landing his first victory in more than a year. Johnson has been the game's most consistent player over the past year and has seven top-six finishes in his past nine starts.

    AMD Ryzen Release Date, Performance, And Price Revealed As Preorders Go Live

    I have no reason to suspect they're intentionally handicapping Intel, but that doesn't mean the tests used unbiased software. AMD is to release their Ryzen Master Utility for overclocking, in the screenshots below you can see an example.
  • Jadeja shines as Australia post 276 in Bangalore Test

    Jadeja shines as Australia post 276 in Bangalore Test

    Australia have their noses in front in this Test as well, but India is crawling back it seems. And Mitchell Marsh's Alfred Hitchcock bowling cameo was hardly worth it.
    India are going to come back harder, cautions Warner

    India are going to come back harder, cautions Warner

    It happens very rarely that the whole team does not perform, this is what happened in the last match . "You can't win every game". Kumble responded to a question regarding the same. "One thing which I noticed was that Virat wants to have a lot of dry fruits".

    Warm weather, damaging thunderstorms coming Wednesday

    The main threat to some sections of Northeast Tennessee "will be widespread damaging straight-line winds", according to the NWS. After highs Tuesday in the low to middle 80s, temperatures should return to more normal levels for the rest of the week.
  • Snapchat Parent To Begin Trading On The New York Stock Exchange Thursday

    Snapchat Parent To Begin Trading On The New York Stock Exchange Thursday

    That places a current valuation of Snap at $28bn, with Evan Spiegel and co-founder Bobby Murphy's holdings worth about $5bn each. Snap is the California-based company behind the popular self-destructing pictures and video app, Snapchat.
    1st Test: O'Keefe spins Australia to 333-run win in Pune

    1st Test: O'Keefe spins Australia to 333-run win in Pune

    Lyon had bowled superbly as well with little reward, but he swept up the tail to finish the second innings with four wickets . At the end of Australia's second innings, they had a lead of 440 runs, and no shortage of time in which to bowl India out.

    South Africa anti-immigrant protests erupt in capital

    He said that the attacks were unfortunate and unwarranted despite "the frustration and anger should that people might be feeling". South African marcher Aysha Ali, 25, daubed Nigerians "very bad".
  • Trinity students encouraged to read books - and lots of them

    Trinity students encouraged to read books - and lots of them

    Now, reading is celebrated all over the country today (some schools have chosen others days this week, though, for their events). Eighth-grader Henry Gardiner wore a familiar black velvet suit with a big red bow as he read to children from the lower grades.

    A US Commander Works With Iraqi Forces To Fight 'Brutal Enemy' ISIS

    The military push against the terrorist's group ISIS' stronghold will spell the end of the terror group in Iraq. This comes after they took the city's airport from the Islamic State.

    Man United boss Jose Mourinho furious over FA Cup scheduling

    Spurs need to start well, as they've found out in the Europa League. "Honestly, I don't think Mkhitaryan is fit for the final". And this coming Sunday we have the first title decider of the year 2017 - the final of the English League Cup 2016-17.

CONNECT