GM’s Opel denied rumors according to which the company has stopped talks with PSA Peugeot Citroen on a deeper tie-up alliance.
Recently Reuters reported that the GM-Peugeot alliance was in danger due to Peugeot’s worsening finances and also the fact that the automaker accepted the state guarantee for its lending arm in October. In February the two companies announced they were considering a full merge of Peugeot with GM’s European unit Opel.
An anonymous source said that the two companies agreed to ‘pause’ discussions regarding the Peugeot-Opel deal. The source also said that an imminent tie-up would have brought deeper workforce and plant cuts for both companies, which is now impossible after Peugeot accepted the government’s conditions not to close plants or cut jobs, in exchange for the 7 billion euro state guarantee. Opel denied these rumors and said that the alliance with Peugeot is ‘fully on track.’
“The alliance between GM and PSA is fully on track. Back in January, we identified three areas that we want to cooperate in – logistics, purchasing and product development – and we are making good progress in each of these three areas,” said Opel’s Global Corporate & Internal Communications Director Stefan Weinmann.