• Germany edition
 
GM 'scraps Opel - Peugeot Citroen merger'
Photo: DPA

GM 'scraps Opel - Peugeot Citroen merger'

Published: 15 Nov 2012 09:19 GMT+01:00
Updated: 15 Nov 2012 09:19 GMT+01:00

General Motors has scrapped plans to merge its troubled German unit Opel with PSA Peugeot Citroen because of the French carmaker's financial woes, a news report said Wednesday.

"GM gave up in early November on the merger plan between Opel and PSA Peugeot Citroen's auto division," French financial newspaper La Tribune said on its website, citing "a well-informed French source."

The source told the paper the prospective deal was "suspended, to say the least, and in all likelihood buried."

Instead of a merger, the carmakers will pursue a more limited partnership in four specific areas, which they had already announced on October 24, La Tribune said.

The companies had already announced in February that GM was taking a seven percent stake in PSA Peugeot Citroen as part of a "strategic alliance."

Neither company had confirmed or denied plans for a full merger.

GM said Wednesday that plans for the alliance were still going forward.

"The alliance between GM and PSA is progressing as planned. We are fully focused on earning the benefits from the alliance that we have identified," said GM spokesman Greg Martin.

"Focus areas are logistics, where we already signed an agreement in summer, purchasing and product development. Beyond that, we have no further comment."

A PSA Peugeot Citroen spokesman said: "It's one rumour after another. We will not make any more comments. On October 24, we announced four projects with GM. Today, we are concentrating on carrying out those projects."

The proposed merger, the subject of much speculation in the French, German and US financial press, was aimed at combining the two carmakers' supply chains and enabling them to jointly produce components such as chassis.

With the European car market in the doldrums due the eurozone debt crisis, manufacturers are faced with heavy losses and overcapacity.

Peugeot, where sales fell by 3.9 percent in the third quarter to €12.9 billion euros, announced in July that it intends to cut 8,000 jobs.

GM profits dropped 12 percent in the third quarter to $1.5 billion, hit by losses in Europe, where it has announced plans to cut 2,600 jobs by year's end.

The company lost half a billion dollars in Europe alone in the third quarter, when it produced just 196,000 cars - down from 270,000 in the same quarter last year.

AFP/jcw

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

19:48 November 17, 2012 by raandy
Of course, if you can't make it in Germany, you sure are not going to make it in France.
Today's headlines
Minister's jet grounded twice in a month
Foreign Minister Steinmeier reboards his plane after the delay. Photo: DPA

Minister's jet grounded twice in a month

German Foreign Minister Frank-Walter Steinmeier had to wait for two hours on a runway on Wednesday night due to a technical glitch on his plane - the second problem the jet has had in a month. READ () »

German of the Week
'It's important people are confronted with cancer'
Photo: Marina Proksch-Park

'It's important people are confronted with cancer'

Images of children with cancer often evoke weakness and defeat. But Marina Proksch-Park shows them enjoying life. The photographer who has sparked an online campaign with her pictures is The Local's German of the Week. READ () »

CDU candidate forced to remove Turkish logo
Yasar Calik. Photo: Facebook/Yasar Calik

CDU candidate forced to remove Turkish logo

A Christian Democrat (CDU) town council candidate has apologized and withdrawn campaign bags on which he had printed a new party logo where the Turkish crescent appeared inside the "C" for Christian. READ () »

Cheap flights get pricier as airlines expand
Lufthansa's daughter company Germanwings is one of the faster-growing budget airlines in Germany. Photo: DPA

Cheap flights get pricier as airlines expand

Budget airlines are expanding their range of routes from Germany but ticket prices are climbing along with them, a report from the German Aeronautics Centre (DLR) revealed on Thursday. READ () »

Ecclestone lawyers: Bribes never happened
Bernie Ecclestone with his lawyers in a Munich court on Thursday morning. Photo: DPA

Ecclestone lawyers: Bribes never happened

UPDATE: Formula One supremo Bernie Ecclestone went on trial in Germany on Thursday, denying charges of bribery that threaten to land the British billionaire in jail. READ () »

Minister praises Erasmus 'success story'
Photo: DPA

Minister praises Erasmus 'success story'

A revamped version of European student exchange programme Erasmus officially launched in Berlin on Thursday with Germany's education minister praising the scheme as a Europe-wide “success story”. READ () »

Turkey tourists lose call to prayer refund bid
Photo: DPA

Turkey tourists lose call to prayer refund bid

A German couple has lost their legal fight to get a refund for a Turkish holiday which they said was ruined by the calls to prayer from a nearby mosque. It is just one of a series of court claims by picky German tourists. READ () »

Germany halts arms sales to Russia
Russian troops surround a Ukrainian base in Crimea. Photo: DPA

Germany halts arms sales to Russia

Germany has stopped selling arms to Russia due to the current “political situation”, according to reports on Thursday. The sale of military equipment to Russia by German firms has been criticized by the country’s Nato allies. READ () »

Truck kills man lying in middle of road
Photo: DPA

Truck kills man lying in middle of road

Police were searching for witnesses on Wednesday morning following a mysterious road accident in which a 25-year-old man was killed as he lay in the middle of the road. READ () »

Where are Germany's smartest towns?
Germany's cleverest town. Photo: DPA

Where are Germany's smartest towns?

A brain training website released scores on Wednesday showing which German towns performed best and worst in a range of cognitive tests - with some surprising results. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
National
Germany sold €40 million of arms to Russia
Photo: DPA
National
Girls find live ammunition in Easter bonfire
Photo: Facebook/screenshot
Berlin
Germany's most viral advert for an apartment?
Gallery
11 things you need to know about German beer
Photo: DPA
Politics
Interview with AfD - 'If Britain goes, Europe is lost'
Photo: DPA
National
Police damage own water cannon with eggs
Photo: DPA
National
Let us start work later after World Cup nights, unions says
Photo: DPA
Society
Crystal meth use hits record level
Photo: DPA
Rhineland
Elderly man taped €200,000 to his genitals
Photo: DPA
Business & Money
What's the unemployment rate in your area of Germany?
Photo: Galerie Bilderwelt
Gallery
World War I in colour photos
Photo: DPA
Society
JobTalk: Why you should teach English in Germany
Advertisement:
Photo: DPA
National
330,000 sign up against TV licence fee
Photo: Submitted
Frankfurt
'I'll get even with my old pal Schwarzenegger'
Photo: DPA
Gallery
Ten great inventions you (probably) didn't know were German
Photo: J. Arthur White
Berlin
Clashes in Berlin as refugees tear down their own camp
Photo: DPA
Gallery
The 10 best German employers to work for
CurrencyFair
Sponsored Article
Why it pays to avoid banks when making overseas transfers
Mr. Lodge
Sponsored Article
How to find a furnished rental in Munich
Sponsored Article
How to make a lasting impression in business
Photo: DPA
Society
Nine jobs you can only do in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,072
jobs available
Toytown Germany
Germany's English-speaking crowd