Opel Insignia

GM Stages European Exit with Sale of Germany’s Struggling Opel

By Stephen Fuchs on Email @StephenWFuchs

General Motors (GM) may first and foremost be seen as an American car company, but early on in the car company’s history, it entered into an agreement to take control of Germany’s Opel in 1929, lasting an unprecedented 88 years. However, after a continuous decline in sales, GM announced a deal with France’s PSA Group to relinquish control of Opel and Vauxhall Motors for 2.2 billion euros ($2.3 billion), effectively marking GM’s exit from Europe.

The sale comes after increased pressure from investors who want to see the company focus on profitability instead of chasing Germany’s VW for global market share. Opel has failed to become profitable for 16 consecutive years, leading GM to finally cut the cord.

With the final terms laid out, the sale to PSA is expected to be completed by the end of this year.

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Sources: Reuters

Photo: Opel

Stephen Fuchs
Stephen founded German Pulse and LGBT Germany out of a passion to introduce Americans to a Germany that goes beyond beer and polka (although with enough beer he has been known to polka it up a bit). He's a coffee addict, lover of wine and good times, a hit in the kitchen and editor of TV commercials. You can follow him on Twitter (@StephenWFuchs) to find out a lot more.
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