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General Motors CEO, Mary Barra, Wednesday, travelled to Germany for talks with local workers and their unions over plans by GM to sell Opel Vauxhall, its loss-making European venture, to rival French carmaker, PSA Peugeot Citroen, according to reports by Financial Times.
General Motors on Tuesday confirmed the plan to sell its European business to Peugeot in a statement obtained from its website, saying though no deal had yet been reached.
“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.
“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,” the statement said.
But local workers union and their representatives had vowed to resist the deal, which if successful, will see GM exit the entire European market with no single presence for the first time in nearly 90 years .
Barra, who was accompanied on the trip by her key lieutenant, Dan Amman, according to Financial Times, arrived at the Germany headquarters of Opel, Wednesday morning, to douse tension from local workers over fears of imminent job losses as a result of the sale.
The visit , Financial Times said, is coming as PSA chief executive, Carlos Tavares, moves to meet with German Chancellor, Angela Merkel, and labour unions over the deal with the American carmaker.
