[KNI]

GM was running Opel for 20 years on loss before they sold it to PSA on August 2017 for 2.2b$.

PSA did some changes and is now netting 0.5b$ profit for the first 6 months. If they can keep it up, the damn sale paid for itself in 2 years.

https://money.cnn.com/2018/07/24/investing/opel-vauxhall-gm-psa/index.html

I bet GM is doing something wrong on other markets too...

 

[Qinsp]

"using more PSA parts" is probably a large portion of the savings.

A Corvette is 57% more in France than the US, but a BMW 330i xDrive is only 30%.

Until all the tax considerations are taken out of the loop, and the protectionism, it's difficult to know what is really going on.

And GM sold the brands at a loss when pensions are considered. PSA bought out employees into early retirement. Something GM might not have been allowed to do.

 

[obermd]

GM was running Opel for 20 years on loss before they sold it to PSA on August 2017 for 2.2b$.

PSA did some changes and is now netting 0.5b$ profit for the first 6 months. If they can keep it up, the damn sale paid for itself in 2 years.

https://money.cnn.com/2018/07/24/investing/opel-vauxhall-gm-psa/index.html

I bet GM is doing something wrong on other markets too...

You mean like not listening to customers...

 

[Ladogaboy]

The other thing is, GM has a lot to fix. If PSA is focusing most of their attention on Opel, and getting it back on track, I'm sure it will turn around more quickly than what GM would have been able to do. But again, the "new" GM, which is really less than 10 years old, has so many other messes to clean up that it might have been years before it ever got to Opel.

Of course, I think GM realized too late that the Ampera-E alone might have been enough to turn Opel around. But that's another story.

 

[hellsop]

Plus whatever work GM put into Opel to improve it doesn't vanish in a puff of smoke the instant the papers are signed. PSA very likely bought a much-better positioned brand than GM did.