Opel denies report about being taken over by PSA Peugeot Citroen image

Opel has denied a report from a French newspaper that cited government officials as saying PSA Peugeot-Citroen should buy Opel in order to challenge VW’s dominance in Europe.

Contacted by Automotive News Europe, an Opel spokesman labeled as “pure speculation” a report published on the website of the Le Monde daily newspaper. The report cited French officials from the finance ministry and from Francois Hollande’s inner circle.

Opel has denied a French newspaper report that cited government officials as saying PSA Peugeot Citroen should buy Opel in order to build a major carmaker to challenge Volkswagen’s market dominance in Europe.

The report cited French officials from the finance ministry and from within Francois Hollande’s inner circle. In February 2012, PSA and Opel disclosed an alliance agreement with the aim of saving at least $2 billion a year within five years, evenly split between the two sides. As part of the tie up, GM paid €320 million for a 7 percent stake in PSA Peugeot Citroen.

The two automakers also agreed to pool research and development, create a global purchasing joint venture and jointly develop new vehicles. Both Opel and PSA have seen their sales drop in Europe amid the region’s sovereign debt crisis.