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Statement on General Motors and PSA Group Strategic Initiatives


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Detroit MI February 14, 2017; Since 2012, General Motors and PSA Group have been implementing an alliance covering, to date, three projects in Europe and generating substantial synergies for the two groups. Within this framework, General Motors and PSA Group regularly examine additional expansion and cooperation possibilities, as well. PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.

There can be no assurance that an agreement will be reached.

EXPERT COMMENTARY

Commentary from Autotrader and Kelley Blue Book analysts on the ongoing, strategic discussions between General Motors and PSA Group, parent company of Peugeot and Citroen. If you would like to speak to any of our analysts on this or any other topic, please let us know. We’d be happy to help. Thank you!

Michelle Krebs, executive analyst for Autotrader:
“Especially in light of Brexit, General Motors must do something with its European operations, which have long lost money and hold little hope for turning profitable anytime soon. In any deal, however, GM needs to make sure it maintains access to its valuable engineering source at Opel. In addition, Opel vehicles provide the basis for a number of GM vehicles sold in other markets, notably North America and China. Vehicles like the Buick Cascada convertible couldn’t be sold successfully in the U.S. without leveraging economies of scale across multiple markets.”

Rebecca Lindland, executive analyst for Kelley Blue Book:
“Opel has been hemorrhaging money for the last 16 years, so hard decisions are on the table in Mary Barra’s version of a profitable GM. The division has been an integral part of GM’s history for nearly 100 years, so untangling it won’t be easy if a sale to PSA goes through. Still, even if GM sells Opel to PSA, I can see a world where both companies continue with existing joint projects long into the future, as these types of engineering collaborations provide vital economies of scale on a local and global basis.”