GM denied rumors that it intends to sell Opel
U.S. group General Motors (GM) announced that it does not intend to sell Opel in response to media reports that the Italian Fiat was interested in the German company takeover, according to Bloomberg.
“Opel is not for sale. Gm fully supports Opel, an integral part of the global group, vital to its success in Europe,” said GM Vice President Steve Girsky, GM’s head of European operations.
Italian daily Il Sole 24 Ore wrote Friday that general manager of Fiat, Sergio Marchionne prepares the takeover of Opel at a “symbolic” price if the alliance between GM and PSA Peugeot Citroen (France) will not succeed. The newspaper did not specify the source of information. Fiat representatives refused to comment on the article.
GM has recorded since 1999 to date losses of $16.8 billion in Europe. Opel reduced the working hours and planned the closure of a factory in Germany in 2016 due to the impact of sovereign debt crisis in the euro area on the car industry.
GM – Peugeot partnership, announced in February this year, is part of GM’s strategy to reinvigorate its operations in the region. The companies however have missed several deadlines for combining the logistics and supply activities. Sources close to the situation said in September that discussions on product development and joint production of auto parts are progressing slowly due to difficult economic conditions.
Vice-president of Peugeot, Frederic Saint-Geours, said last week at the Paris Motor Show that joint projects of the alliance with GM will be implemented before the end of the year. Those contracts will be signed before the end of October, General Motors recently announced.
Peugeot also tries to return to profit, as company losses are currently estimated at €200 million per month. French group develops a plan of 8,000 redundancies, which will end with closing a factory located near Paris.
Fiat took over in 2009 American car manufacturer Chrysler. Italian group has suspended this year investments in Italy and Europe and cut spending by €500 million, delaying the launch of several models. Marchionne believes that European car market will not return to profit before 2014. Fiat tried in 2009 to take over Opel. The Italian group recorded this year loss of €700 million in Europe.
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