EDITOR’s NOTE
Peugeot and General Motors to marry?
The news that General Motors (GM) is again looking at selling off its loss-making Opel division could have far-reaching consequences. Beyond a statement saying the companies are in discussions, neither GM or PSA Group in SA or elsewhere in the world has been willing to speculate on how any deal might play out.
GM executives, and in particular CEO Mary Barra, have been ruthless in getting rid of dead wood and GM has twice tried to sell its Europebased Opel operations. This is also not the first time that discussions have taken place, with GM owning a 7% stake in PSA until 2013. It is the first time, however, that rumours have started circulating that the discussions might actually be a first step to a full merger between the two companies.
So what could this mean for SA? We tried to get comment from Peugeot SA and GM SA, but both merely sent us the international joint statement.
Peugeot has downscaled its operations in SA and even stopped importing the Citroen brand late in 2016. Last month the company sold just 78 passenger cars in SA compared to GM’s 1,414.
It would seem unlikely Peugeot would take over Opel operations locally.
At the same time, GM SA is not in a great place either. It continues to receive special dispensation from the Department of Trade and Industry because it is not producing enough vehicles to satisfy the criteria of the Automotive Production and Development Programme.
A full merger between GM and PSA Group would create one of the biggest carmakers in Europe. However, PSA CEO Carlos Tavares is also renowned for his strict costcutting measures which have seen PSA rebound from near bankruptcy a few years ago to full profitability.
Speculation has been rife in recent years surrounding the future of Peugeot Citroen SA and GM SA. Negotiations now taking place behind the scenes internationally will only fuel speculation further.