PLANNED MERGER
PSA pledges to spare Opel’s four production sites
The planned sale raises the spectre of cutbacks amid overcapacity in Europe’s car industry
Frankfurt — PSA Group has pledged to Germany to continue operating all four of Opel’s German production sites as part of the French car maker’s planned takeover of General Motors’ European arm, German Sunday paper Bild am Sonntag reported. The planned sale was confirmed by both firms on Tuesday, raising the spectre of cutbacks in the wake of a deal because Europe’s car industry has been dogged for years by overcapacity. Government sources said that PSA had signalled it was open to German demands to preserve sites, jobs and existing collective bargaining contracts but talks with Britain, home to Opel’s sister brand Vauxhall, would also have to tie into a final job deal. The paper said PSA’s general counsel Olivier Bourges had told two deputy ministers and an adviser to Chancellor Angela Merkel on Thursday that Opel would continue as a separate entity within PSA group and that no German sites would be closed, without specifyingits sources. The takeover deal would likely be signed by M...
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