Skip advert
Advertisement

'General Motors should stick with Vauxhall, not find an easy way out'

As discussions between GM and PSA heighten, these talks could highlight that GM is giving up on Europe again, says Steve Fowler

As I write this, high-level discussions are taking place about the future of one of the UK’s biggest and most important car brands: Vauxhall.

GM, the US owner of Vauxhall and Opel, is in talks with PSA, maker of Peugeot, Citroen and DS cars, about selling its loss-making European business. Meanwhile, UK politicians and union leaders are worrying about the threat of factory closures.

Advertisement - Article continues below

This all comes at a time when there’s real hope for Vauxhall and Opel’s line-up in Europe. New SUVs are arriving, while the excellent Astra gives a strong indication of how good the new Insignia will be. Meanwhile, the Ellesmere Port and Luton plants are among the most productive in Europe.

Vauxhall takeover talks: full details

But why would PSA want to buy brands that compete directly with their existing line-ups? PSA boss Carlos Tavares has shown his skill at turning around an ailing business; his ‘Back in the Race’ plan, morphing into ‘Push to Pass’, has heralded big cost savings and impressive, sought-after new product that’s now leading to strong profit. Could he do the same with Vauxhall and Opel? 

There’s no doubt PSA would be attracted by the strength of GM’s brands in Europe’s strongest markets: Germany and the UK. And the efficiencies of technology sharing that the Volkswagen Group has so effectively proven cannot be in doubt.

'Things are finally going to get interesting for DS in 2017'

But where would Vauxhall and Opel sit between a resurgent Citroen, an increasingly impressive Peugeot and exciting new premium brand DS? I’m sure Tavares has a plan, but it’ll have to be a bold one.

While this might make financial sense for GM, it could turn out to be another example of this great American company giving up on Europe – remember Saab and Chevrolet? Let’s hope PSA sees more value in Vauxhall and Opel than GM does.

What do you think of the current state of the General Motors and PSA talks? Let us know below...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

‘Vauxhall listened to criticism and cut its electric car prices, now other brands need to follow suit’
Opinion - Vauxhall Corsa Electric
Opinion

‘Vauxhall listened to criticism and cut its electric car prices, now other brands need to follow suit’

Mike Rutheford thinks electric car prices are still far too expensive
12 May 2024
10 surprising things made by car companies, that aren't cars
Things made by car manufacturers - header
Features

10 surprising things made by car companies, that aren't cars

The world’s biggest auto manufacturers have many strings to their bows...
6 May 2024
On-street Electric Vehicle charging slips off the political agenda for 2 May polls
On-street EV charging
News

On-street Electric Vehicle charging slips off the political agenda for 2 May polls

Voters rate council support for EV owners poorly, but election candidates aren’t addressing the issue
1 May 2024
Car Deal of the Day: Vauxhall Corsa Electric now cheaper than petrol!
Vauxhall Corsa Electric front corner driving
News

Car Deal of the Day: Vauxhall Corsa Electric now cheaper than petrol!

Vauxhall is offering a Corsa or Mokka EV for less than the equivalent petrol car on identical terms
30 Apr 2024

Most Popular

New 2024 Nissan Qashqai prices and specs announced as family SUV war heats up
Nissan Qashqai reveal - full front
News

New 2024 Nissan Qashqai prices and specs announced as family SUV war heats up

The start price for the Nissan Qashqai has increased by £3,000 due to the loss of the old entry-level Visia trim
24 May 2024
New Kia EV3 is a £30k electric car with a 372-mile range
Kia EV3 - front
News

New Kia EV3 is a £30k electric car with a 372-mile range

Kia expands its electric line up with the EV3 – taking plenty of inspiration from the flagship EV9
23 May 2024
Car Deal of the Day: new VW Tiguan in well-equipped Match trim for under £300 a month
Volkswagen Tiguan - front cornering
News

Car Deal of the Day: new VW Tiguan in well-equipped Match trim for under £300 a month

Volkswagen’s practical and refined mid-size SUV is our Deal of the Day for 24 May
24 May 2024