Think of it as a merger of the equally sick: PSA’s automotive division (Peugeot Citroen) and Opel could be put into one company, a joint venture between GM and PSA, La Tribune reports with Reuters providing the translation.
Neither company had a comment. According to the “secret plan,” GM would bring fewer cars to the deal, but would inject cash. The proposal is likely to run into objections from the French government and has yet to be submitted to the Peugeot board, the report added.
La Tribune sees few synergies in a link-up. Both companies are focused on the same market Europe, and compete in similar segments. Both lack presence in growth markets. Combining Europe’s second largest carmaker PSA with Opel would not even create a carmaker larger than Volkswagen.