Peugeot-Citroen is in talks to acquire General Motors European operations, the Opel division, or create some form of increased strategic alliance, a spokesman confirmed to Reuters news service, which broke the story this morning.
If the two were to combine forces, they would equal 16 percent of the European car market, placing them second behind VW. Reuters said GM would retain a share in the combined automakers – how much is not clear at this time.
Opel, which also includes Britain’s Vauxall division, has struggled to produce a profit for GM over the years. Most recently, Peugeot/Citroen has posted a profit. As is usually the case in such matters, those close to the negotiations said this all could fall apart.
Yet Reuters reported that a decision may be announced as early as this week, an indication that talks may be at an advanced stage.
Analysts said Peugeot/Citroen, known as PSA Group, would gain GM’s engineering and electric car technology, as well as numerous cost savings from the deal. GM and PSA currently share production of SUV’s and minivans.
This morning’s breaking news is likely to spark talk of other possible mergers, as European automakers deal with Britain’s Brexit, unfavorable currency valuations on the world market, and the costs associated with the development of electric and self-driving cars. Fiat Chrysler, for example, has long sought a partner.
BMW Group said sales are off to their best-ever start to the year with January figures showing increased deliveries in all world regions. With its three premium brands, BMW, MINI and Rolls-Royce, the group delivered a total of 163,288 vehicles worldwide, an increase of 6.8% compared with January last year.
Mitsubishi today announced it has chosen the name Eclipse Cross for its new compact SUV model to be debuted at the Geneva show on March 7th. Eclipse derives its name from the coupe sold in the U.S. from 1989, while Cross is short for crossover. It also released a teaser photo.
Tesla has launched sales efforts in the Middle East with the Roads and Transit Authority in Dubai buying 200 of them for its taxi/limousine fleet. Tesla is now taking orders for its cars in the oil rich country, will open a store in a shopping mall in Dubai, and later, a service center there.
Toyota said it has sold more than 10 million hybrid vehicles worldwide, with more than three million of them sold in North America.