according to Other complex questions to resolve include licensing fees for technology used in Opel cars and plans to cut production capacity.
The program is underfunded by about $9 billion, according to data compiled by Bloomberg.
To build support for the deal, PSA executives have been touring Europe to meet with labor leaders and politicians and assure them that Opel’s workers and production sites will be protected.
One of the key negotiating points has been how PSA can achieve about 2 billion euros ($2.1 billion) in savings from a deal, said one person.
Another issue in the talks has been how GM and PSA will manage the pension plan for Opel retirees, people familiar with the discussions have said.
as mentioned in GM Europe, primarily the Opel and Vauxhall brands, has lost money for 16 consecutive years.
GM took full control of Vauxhall in 1925.
Save for World War II when the German government seized control, Opel has been continuously owned by GM since 1931.
General Motors has officially agreed to sell its Opel and Vauxhall brands to the PSA Group as the Detroit automaker attempts to stanch more than a decade of staggering losses in Europe.
In March 2012, GM took a 7 percent stake in PSA, and the two automakers continued to share product development even after GM announced it was selling that stake in December 2013.
as mentioned in
Peugeot maker PSA has reached a deal to buy Opel and Vauxhall and an announcement is planned for Monday
Courtney GoldsmithFrench carmaker PSA has closed on a deal with General Motors (GM) to buy the firm’s loss-making Opel division, which includes Britain’s Vauxhall, according to reports.
PSA’s takeover of GM in Europe will create the second largest European carmaker after Germany’s Volkswagen if it is successful.
Vauxhall employs 4,500 staff in the UK at plants in Ellesmere Port and Luton.
Last week, after a “constructive meeting” with the PSA chief executive Carlos Tavares, Clark said Peugeot will stick to commitments made to Vauxhall factories in the UK.
The two groups announced today they will hold a press conference Monday morning – but they didn’t specify a subject.
collected by :Elizabis Ethan/strong>
visit us CARS