General Motors has agreed to sell its European arm Opel for 1.3 billion euros to French PSA Group. Today's deal is adding Opel and its British subsidiary, Vauxhall, to PSA's Peugeot and Citroen brands, making PSA Europe's No. 2 carmaker.
French car maker PSA is reportedly seeking a refund from General Motors (GM) after discovering it was allegedly misled about Opel's emissions challenges prior to the acquisition of the German car maker.
The new owner of Opel-Vauxhall says it won't begin involuntary layoffs at the loss making carmaker it bought from GM. The restructuring plan will see factories remain open and the brand expand to 20 new export markets.
The French carmaker has completed its takeover of GM's European subsidiaries ahead of time, naming a new management to chart an attempted turnaround for the two struggling brands.
Karl-Thomas Neumann, CEO of General Motors' European subsidiary, Opel, is stepping down. But he will stay on the board until Opel's takeover by French rival PSA is completed.
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