Vauxhall-Opel sold by GM to Peugeot-Citroen

The French company that owns Peugeot and Citroen has struck a 2.2bn euro (£1.9bn) deal to buy General Motors’ European unit, including Vauxhall.

GM Europe has not made a profit since 1999 and the deal has raised fears about job losses at Vauxhall.

Do you think GM’s choice has been the right one?

PSA said it would return Opel and its Vauxhall brand to profit, and expected to make savings of £1.47bn per year by 2026, with most of the cuts made by 2020.

Next year PSA will decide where it will make the next generation of Astra cars currently made in the UK against the background of Brexit negotiations.

However, it is generally accepted that the 24 factories the combined company will have in Europe is too many. This means that now some of them risk to be shutted down to produce in more strategic locations.

Which strategy could Peugeot have used apart from buying an important brand from a competitor?

The link of the original article can be found here:

http://www.bbc.co.uk/news/business-39175740

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