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With the addition of Opel-Vauxhall, which generated revenue of 17.7 billion Euros in 2016, PSA will become the second-largest automaker in Europe, with a 17 percent market share, the companies said in a joint statement .
“We are proud to join forces with Opel/Vauxhall and are deeply committed to continuing to develop this great company and accelerating its turnaround,” Carlos Tavares, chairman of PSA’s board, said in the statement.
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“We are very pleased that together, GM, our valued colleagues at Opel-Vauxhall and PSA have created a new opportunity to enhance the long-term performance of our respective companies by building on the success of our prior alliance,” Mary Barra, GM chairman and chief executive, also said.
GM is the majority owner of the DMAX engine plant in Moraine, which has more than 600 employees, and numerous Dayton-area suppliers produce parts for GM, including Fuyao Glass America, one of the area’s fastest growing manufacturers.
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PSA, together with BNP Paribas, will also acquire all of GM Financial’s European operations through a newly formed 50-50 joint venture that will retain GM Financial’s current European platform and team.
Said GM, “The transaction is another step in GM’s ongoing work to transform the company, which has delivered three years of record performance and a strong 2017 outlook, and returned significant capital to shareholders. It will strengthen GM’s core business, support its continued deployment of resources to higher-return opportunities including in advanced technologies driving the future, and unlock significant value for shareholders.”
GM said it would use the transaction to accelerate share repurchases, subject to market conditions.
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