GM to pay PSA for Opel takeover?

A source claims GM is looking to get rid of its cash-bleeding Opel division once and for all.

A new report claims that General Motors is ready to pay partner PSA Peugeot-Citro├źn an unspecified amount of money to take over the troubled Opel division.

Although GM has said time and again that it wants to hang on to Opel, an anonymous inside source told France's La Tribune newspaper that members of the automaker's top brass are actively seeking ways to get rid of the cash-bleeding company.

"The scenario of PSA taking over Opel is under consideration," said the source. "The French government might even be ready to help with the takeover."

France's government has not commented on the matter but Arnaud Montebourg, the Minister of Industrial Recovery, has previously voiced his skepticism about such a deal. In a time when PSA is trying to sell more cars around the world to escape the throes of the depressed European market, taking over Opel, which almost exclusively sells cars on the old continent, seems counterintuitive.

GM CEO Dan Akerson denied the rumor.

"We are not going to sell Opel," said Akerson in an interview at the Detroit Motor Show. "It's not to be given away, either. That goes without saying," he added.

Plagued by slow sales and chronic overcapacity, Opel has been operating with a deficit for over a decade.

Photo by Ronan Glon.

Read more!