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| GM set to announce Opel and Vauxhall sale on Monday | |
| (about 2 hours later) | |
| General Motors is set to announce a deal to sell its Vauxhall and Opel operations to the French company that owns Peugeot and Citroen. | |
| PSA Group has scheduled a press conference with GM for Monday morning in Paris. | PSA Group has scheduled a press conference with GM for Monday morning in Paris. |
| The two companies had wanted to announce a deal before the start of the Geneva motor show on Tuesday. | The two companies had wanted to announce a deal before the start of the Geneva motor show on Tuesday. |
| The sale could threaten the jobs of 4,500 workers at Vauxhall's plants at Ellesmere Port and Luton. | The sale could threaten the jobs of 4,500 workers at Vauxhall's plants at Ellesmere Port and Luton. |
| Union officials said on Sunday that Vauxhall staff had endured a "nerve-wracking" few weeks. | Union officials said on Sunday that Vauxhall staff had endured a "nerve-wracking" few weeks. |
| Buying GM's loss-making European operations will make PSA the continent's second-biggest car maker after Volkswagen and ahead of French rival Renault. | Buying GM's loss-making European operations will make PSA the continent's second-biggest car maker after Volkswagen and ahead of French rival Renault. |
| PSA and GM Europe sold a combined 4.3 million vehicles last year and posted revenues of 71.6bn euros (£61.9bn). | |
| The two companies already share some production and confirmed last month they were in talks. | The two companies already share some production and confirmed last month they were in talks. |
| Opel had hoped to return to profitability by 2016, but the slide in sterling following the EU referendum last June contributed to its 257m euros annual loss. | Opel had hoped to return to profitability by 2016, but the slide in sterling following the EU referendum last June contributed to its 257m euros annual loss. |
| In contrast, Ford Europe managed to make a pre-tax profit last year despite the pound's collapse. | In contrast, Ford Europe managed to make a pre-tax profit last year despite the pound's collapse. |
| Opel has failed to emulate Ford or PSA in reducing overcapacity at its factories, despite closing a plant in the western German city of Bochum with the loss of 3,000 jobs in 2014. | |
| Stefan Bratzel, of Germany's Center of Automotive Management, said: "Opel suffers more from overcapacity than other European carmakers, meaning it has to offer big discounts to keep up a certain level of production and that hits its profitability." | Stefan Bratzel, of Germany's Center of Automotive Management, said: "Opel suffers more from overcapacity than other European carmakers, meaning it has to offer big discounts to keep up a certain level of production and that hits its profitability." |
| In a bid to protect its Buick and Chevrolet brands, GM has not allowed Opel to expand outside Europe. | In a bid to protect its Buick and Chevrolet brands, GM has not allowed Opel to expand outside Europe. |
| "All the western carmakers have been making their money in the Chinese market these past few years," said Marc Staudenmayer of the Advancy management consultancy. | "All the western carmakers have been making their money in the Chinese market these past few years," said Marc Staudenmayer of the Advancy management consultancy. |
| "Opel wasn't allowed to do that, which explains its underperformance since 2005. Opel was reined in too much by GM," he added. | "Opel wasn't allowed to do that, which explains its underperformance since 2005. Opel was reined in too much by GM," he added. |
| European champion | European champion |
| GM's European operations have lost money for 16 consecutive years and were almost sold in 2009. | GM's European operations have lost money for 16 consecutive years and were almost sold in 2009. |
| For PSA, the deal caps a stellar two-year recovery under chief executive Carlos Tavares, who is expected to slash costs at Opel in a bid to generate savings of up to 2bn euros a year. | For PSA, the deal caps a stellar two-year recovery under chief executive Carlos Tavares, who is expected to slash costs at Opel in a bid to generate savings of up to 2bn euros a year. |
| Jim Holder, of What Car? magazine, told the BBC: "PSA has capacity to build more cars in its own plants - it doesn't need these plants in Britain. | Jim Holder, of What Car? magazine, told the BBC: "PSA has capacity to build more cars in its own plants - it doesn't need these plants in Britain. |
| "And of course there are obstacles in the way, with the currency fluctuations, the problems posed by Brexit with freedom of movement, freedom of movement for parts as well." | "And of course there are obstacles in the way, with the currency fluctuations, the problems posed by Brexit with freedom of movement, freedom of movement for parts as well." |
| Len McCluskey, general secretary of the Unite trade union, said he had spoken to the chief executives of GM and the PSA Group over the weekend. | Len McCluskey, general secretary of the Unite trade union, said he had spoken to the chief executives of GM and the PSA Group over the weekend. |
| "While initial discussions with the PSA Group have been relatively positive, our priority now is to ensure a long-term future for our plants and the tens of thousands of workers depending on them," Mr McCluskey added. | "While initial discussions with the PSA Group have been relatively positive, our priority now is to ensure a long-term future for our plants and the tens of thousands of workers depending on them," Mr McCluskey added. |
| Greg Clark, the Business Secretary, said last month that Vauxhall workers had no reason to fear for their jobs. | Greg Clark, the Business Secretary, said last month that Vauxhall workers had no reason to fear for their jobs. |
| "We have a very strong domestic market and Vauxhall has a large share of that - something PSA recognises," he told MPs. | "We have a very strong domestic market and Vauxhall has a large share of that - something PSA recognises," he told MPs. |
| "From my initial conversations I think it is understood that Vauxhall's plants are very efficient." | "From my initial conversations I think it is understood that Vauxhall's plants are very efficient." |
| Mr Tavares recently told analysts the acquisition offered an "opportunity to create a European car champion" and quickly exceed five million sales annually. | Mr Tavares recently told analysts the acquisition offered an "opportunity to create a European car champion" and quickly exceed five million sales annually. |
| PSA also plans to revamp Opel's model range. "There are market segments where Opel isn't very strong, like SUVs," Mr Staudenmayer said. | PSA also plans to revamp Opel's model range. "There are market segments where Opel isn't very strong, like SUVs," Mr Staudenmayer said. |