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Re: PSA to buy GM's Opel

meanwhile...

GM isn't done pruning
International markets and North American cars could be targets
Automotive News

Nick Bunkley - March 13, 2017


After pulling the trigger on a sale of its European operations, General Motors signaled that it's willing to cut off more vestigial corners of its business in a decidedly unsentimental drive to improve its profit margins and stock price.

CEO Mary Barra made clear last week that the Opel deal is not the end of the automaker's effort to pare its portfolio, though other moves under consideration are unlikely to have the sweeping impact of effectively abandoning one of the world's largest and most mature markets.

"There's a little bit more work that we're doing in the international markets," Barra told reporters on a conference call from Paris, after announcing Opel's sale to PSA Group of France in a deal that shrinks GM's global volume by 12 percent. "Our overall philosophy is that every country, every market segment has to earn its cost of capital."

That level of accountability -- after previous regimes tolerated more than $20 billion in losses in Europe since 1999 -- encapsulates how dramatically Barra and her leadership team are shaking up a company that for decades coveted its status as the world's largest automaker.

It also has sparked concern among employees at GM's other far-flung and lower-margin units that they could be next, according to people within the company.

"In Mary Barra's GM, everything is on the table," said Rebecca Lindland, a senior analyst with Kelley Blue Book, "which is a really interesting and appropriate way to look at a business, especially one that's 100-and-some years old -- and something that companies don't do enough of."

GM is targeting two other pieces of its operations for reduced investment: North American cars and "select" international markets, according to a chart accompanying a GM conference call to discuss the Opel sale with analysts last week. Low profit potential and weak franchise strength have earned them a spot on the chopping block, the chart said.

Barra and GM President Dan Ammann declined to elaborate on what those plans might involve or a time frame. By diverting resources from those businesses, GM would free up more capital for more lucrative areas, including pickups and SUVs, autonomous vehicles, Cadillac, China and GM Financial, they said.

GM's money-losing South America business, which is battling severe economic turmoil, also is earmarked for increased investment, because management has categorized its franchise value in that market as high.

GM already has shown investment discipline by ending or limiting operations in Russia, Australia, Indonesia and Thailand, and scaling back its plans for India. Last week's comments suggest that the company might cut further in those countries and others.

The North American car business has deteriorated rapidly as consumers gravitate more toward cross-overs and SUVs every month. Cars accounted for 38.3 percent of GM's U.S. sales in 2013 but just 25.3 percent in the first two months of this year.

The fallout is evident on dealership lots. GM had four months' worth of cars in inventory as of March 1, roughly double the target most automakers aim for. It had an 81-day supply of light trucks, including fewer than 60 days' worth of its full-size SUVs.

GM could choose to walk away from some troubled segments, such as small cars or full-size sedans. It already has stopped building the compact Buick Verano in North America and announced that it will kill the Australian-built Chevrolet SS, a four-door sports sedan.

Or it could merely spend less on some nameplates, allowing more time to lapse between updates and new generations. GM recently overhauled many of the cars in its lineup -- some of which are based on Opel models that are now leaving the company -- and could easily justify delaying more investments in them.

"We expect those architectures to carry us far into the future," Ammann said.

Chevy has two U.S. cars classified as subcompact or smaller, whereas other brands have just one. Sales of the Spark, the smaller of the two, are surging, but the Sonic has plunged 47 percent so far this year, with many would-be buyers likely opting instead for the Trax, a crossover on the same platform.

On the other end of the car spectrum, the Chevy Impala and Buick LaCrosse are fading fast. Sales are down 31 percent this year for the Impala, despite rave reviews from Consumer Reports and others, and 60 percent for the LaCrosse. On March 1, GM had a 340-day supply of the LaCrosse, which was redesigned just last year.

In addition to funneling resources into higher-margin plays, GM is heavily focused on returning capital to shareholders. The Opel sale, by reducing the company's target cash balance to $18 billion from $20 billion, frees up $2 billion that executives plan to use to accelerate share buybacks.

"That's an immediate opportunity for us to reward shareholders without changing the risk profile of the company or our ability to manage through a downturn," CFO Chuck Stevens said.

John Murphy, an analyst with Bank of America Merrill Lynch, questioned that strategy. He said GM should use the $2 billion to build a larger cash cushion to ensure it can maintain its dividend and product investments during the next downturn, as well as absorb any negative effects of new Trump administration policies.

Murphy also argued that the sale of Opel itself was misguided.

"It appears that GM's recent decision-making has become much more short-term-focused and, in our opinion, could create challenges for the company in the coming years," he wrote in a report to clients last week.

But Lindland, the Kelley Blue Book analyst, praised GM's willingness to cut ties with Opel as well as its newfound emphasis on the bottom line rather than on maximizing global market share at all costs.

"It takes a lot of discipline to shift away from a volume-is-king kind of mentality," she said. "In the end, that's going to make a better GM -- a longer-standing company that's not only more profitable but more relevant."
 

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Re: PSA to buy GM's Opel

meanwhile...

GM isn't done pruning
International markets and North American cars could be targets
Automotive News

Nick Bunkley - March 13, 2017


After pulling the trigger on a sale of its European operations, General Motors signaled that it's willing to cut off more vestigial corners of its business in a decidedly unsentimental drive to improve its profit margins and stock price.

CEO Mary Barra made clear last week that the Opel deal is not the end of the automaker's effort to pare its portfolio, though other moves under consideration are unlikely to have the sweeping impact of effectively abandoning one of the world's largest and most mature markets.

"There's a little bit more work that we're doing in the international markets," Barra told reporters on a conference call from Paris, after announcing Opel's sale to PSA Group of France in a deal that shrinks GM's global volume by 12 percent. "Our overall philosophy is that every country, every market segment has to earn its cost of capital."

That level of accountability -- after previous regimes tolerated more than $20 billion in losses in Europe since 1999 -- encapsulates how dramatically Barra and her leadership team are shaking up a company that for decades coveted its status as the world's largest automaker.

It also has sparked concern among employees at GM's other far-flung and lower-margin units that they could be next, according to people within the company.

"In Mary Barra's GM, everything is on the table," said Rebecca Lindland, a senior analyst with Kelley Blue Book, "which is a really interesting and appropriate way to look at a business, especially one that's 100-and-some years old -- and something that companies don't do enough of."

GM is targeting two other pieces of its operations for reduced investment: North American cars and "select" international markets, according to a chart accompanying a GM conference call to discuss the Opel sale with analysts last week. Low profit potential and weak franchise strength have earned them a spot on the chopping block, the chart said.

Barra and GM President Dan Ammann declined to elaborate on what those plans might involve or a time frame. By diverting resources from those businesses, GM would free up more capital for more lucrative areas, including pickups and SUVs, autonomous vehicles, Cadillac, China and GM Financial, they said.

GM's money-losing South America business, which is battling severe economic turmoil, also is earmarked for increased investment, because management has categorized its franchise value in that market as high.

GM already has shown investment discipline by ending or limiting operations in Russia, Australia, Indonesia and Thailand, and scaling back its plans for India. Last week's comments suggest that the company might cut further in those countries and others.

The North American car business has deteriorated rapidly as consumers gravitate more toward cross-overs and SUVs every month. Cars accounted for 38.3 percent of GM's U.S. sales in 2013 but just 25.3 percent in the first two months of this year.

The fallout is evident on dealership lots. GM had four months' worth of cars in inventory as of March 1, roughly double the target most automakers aim for. It had an 81-day supply of light trucks, including fewer than 60 days' worth of its full-size SUVs.

GM could choose to walk away from some troubled segments, such as small cars or full-size sedans. It already has stopped building the compact Buick Verano in North America and announced that it will kill the Australian-built Chevrolet SS, a four-door sports sedan.

Or it could merely spend less on some nameplates, allowing more time to lapse between updates and new generations. GM recently overhauled many of the cars in its lineup -- some of which are based on Opel models that are now leaving the company -- and could easily justify delaying more investments in them.

"We expect those architectures to carry us far into the future," Ammann said.

Chevy has two U.S. cars classified as subcompact or smaller, whereas other brands have just one. Sales of the Spark, the smaller of the two, are surging, but the Sonic has plunged 47 percent so far this year, with many would-be buyers likely opting instead for the Trax, a crossover on the same platform.

On the other end of the car spectrum, the Chevy Impala and Buick LaCrosse are fading fast. Sales are down 31 percent this year for the Impala, despite rave reviews from Consumer Reports and others, and 60 percent for the LaCrosse. On March 1, GM had a 340-day supply of the LaCrosse, which was redesigned just last year.

In addition to funneling resources into higher-margin plays, GM is heavily focused on returning capital to shareholders. The Opel sale, by reducing the company's target cash balance to $18 billion from $20 billion, frees up $2 billion that executives plan to use to accelerate share buybacks.

"That's an immediate opportunity for us to reward shareholders without changing the risk profile of the company or our ability to manage through a downturn," CFO Chuck Stevens said.

John Murphy, an analyst with Bank of America Merrill Lynch, questioned that strategy. He said GM should use the $2 billion to build a larger cash cushion to ensure it can maintain its dividend and product investments during the next downturn, as well as absorb any negative effects of new Trump administration policies.

Murphy also argued that the sale of Opel itself was misguided.

"It appears that GM's recent decision-making has become much more short-term-focused and, in our opinion, could create challenges for the company in the coming years," he wrote in a report to clients last week.

But Lindland, the Kelley Blue Book analyst, praised GM's willingness to cut ties with Opel as well as its newfound emphasis on the bottom line rather than on maximizing global market share at all costs.

"It takes a lot of discipline to shift away from a volume-is-king kind of mentality," she said. "In the end, that's going to make a better GM -- a longer-standing company that's not only more profitable but more relevant."
My guess Holden is next...
 
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Mercury C557
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Re: PSA to buy GM's Opel

slow day...so stirring the pot a bit

thinking of starting a DeathWatch/POLL for GM's final bankruptcy & breaking-up
wonder for Fomoco plans to take advantage of being the Last American Mfg...
...before 'mobility' replaces most vehicles

&
here's a graphic I saw at GMi - no idea if it's 'real'
 

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Re: PSA to buy GM's Opel

something about this idea thoroughly DELIGHTS me
...


JLR's next move: Buy Vauxhall from PSA
AutomotiveNews
» Blogs » Jaguar »
Richard Truett - March 21, 2017


Britain’s Jaguar Land Rover has been on a roll since separating from Ford in 2008. New models, new engines, new technology and new plants have more than doubled the automaker’s global sales to 583,312 last year.

Indeed, JLR’s turnaround, from a money-losing business Ford dumped for $2.3 billion, at a huge loss, to India’s Tata Motors, is one of the industry’s biggest success stories of the last decade.

But now the next -- and far more difficult -- challenge awaits: growing annual global volume to 1 million vehicles, a goal of JLR’s hard-charging German CEO, BMW-trained Ralf Speth.

Perhaps the best opportunity to do that quickly and affordably has appeared with General Motors’ sale of its money-losing Opel and Vauxhall brands to France’s PSA Group.

JLR should approach PSA about buying Vauxhall, a brand consisting of mostly rebadged Opel vehicles that is available only in the United Kingdom.

With the addition of the Range Rover Velar and the fifth-generation Land Rover Discovery, as well as filling out the Jaguar lineup with the XE compact sedan and F-Pace crossover, JLR’s volume should easily top 600,000 vehicles in 2017 -- barring any dramatic economic disruptions.

A new version of the rugged Land Rover Defender is coming, as is the battery-powered Jaguar I-Pace crossover. And Jaguar is expected to get at least one more crossover. There is speculation that a Land Rover or Range Rover smaller than the Evoque could be in JLR’s product plans. But those vehicles likely would add only incremental sales and wouldn’t propel JLR to 1 million light vehicles a year.

Adding Vauxhall to JLR’s corporate garage makes sense for JLR and PSA. The real prize in the GM deal was Opel, which alone accounts for about a 1 million vehicles a year.

Opel is strong in Europe and the Middle East, and has established a toehold in South America and Asia. Opel’s volume can help PSA lower production costs by spreading technology, platforms and components to Opel vehicles. Vauxhall will add little to PSA, except perhaps engineering costs to develop variations of Opels for the U.K.

Vauxhall’s volume has been holding steady at around 250,000 vehicle per year in the U.K.

JLR, with a mainstream brand such as Vauxhall, could expand into new segments and markets in which neither Jaguar nor Land Rover can compete. JLR engineers have been quietly working in India on Tata Motors’ core entry-level vehicles to make them more competitive in that tough market, so JLR engineers are gaining experience working on nonluxury vehicles.

If you look at JLR, it is clear that BMW is the company it has emulated most since the split with Ford. In fact, many of JLR’s top managers come from BMW, so it is no surprise that JLR is beginning to look a lot like a sort of British BMW.

But even BMW has a hedge against economic turmoil with its Mini brand, and it would not surprise me to see JLR eventually launch a nonluxury brand that helps it expand globally.

Vauxhall gives JLR a chance to do that with an established, functioning brand, instead of resurrecting a dead or damaged brand or trying to create a new one.

For PSA -- a company that was at death’s door five years ago -- it would be financially less burdensome to integrate one brand, Opel, into its product planning. Freed of Vauxhall, PSA wouldn’t have to worry about manufacturing low-volume cars in England once the country leaves the European Union.

As I walked past the Tata stand this month at the Geneva auto show, I saw a couple of really sharp cars and thought they could easily become Vauxhalls under JLR. I can envision a Subaru-like lineup of subcompact and compact all-wheel-drive sedans, hatchbacks, wagons and small SUVs, built by JLR, powered by three- and four-cylinder Ingenium engines, and wearing the Vauxhall badge. No vehicle like that could today wear a Jaguar or Land Rover name. JLRV has a nice ring to it.

- - - - - - -

now which Mfg wouid go well with the HOLDEN nameplate?
...cool logos:

 

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Re: PSA buys GM's Opel >> Aftermath...


GM Korea May Close Down Its Manufacturing Presence in Korea
Continuous Rumors...

BusinessKorea.co.KR
- Michael Herh - 27 April 2017


There are rumors that GM Korea will withdraw from the domestic market once again. According to local media reports on April 24, rumors that GM Korea will leave the country have emerged as the company posted 530 billion won (US$469.9 million) in operating loss last year and recently announced a voluntary retirement program for its employees...

...Meanwhile, some industry sources said that GM Korea is carrying out the restructuring program as its exports to the U.S. and Europe showed a sharp decline after the GM headquarters in the U.S. withdrew its Chevrolet brand from Europe.

In particular, the discontinuation of the Chevrolet Orlando is a sensitive issue to GM Korea as it is closely connected with its production facility. The Gunsan plant is mentioned as the first production base to be closed when GM Korea withdraws from the Korean market in phases.

There were also rumors that GM Korea will close down the Gunsan plant as the company switched the production line of the Chevrolet Cruze, which has recently released full-changed models, to the Bupyeong plant after the discontinuation of the Orlando.

Exports of GM Korea’s fully built cars decreased from 620,000 units in 2013 to 410,000 units last year. This was because the Chevrolet brand withdrew from the European and Russian markets since 2013.

As the production base of GM’s compact cars, GM Korea was in charge of exporting products to the European market but it is suffering from lackluster sales after the withdrawal.

An official from the industry said, “When GM Korea fails to find a solution for export soon, it will have no choice but to reduce production. With GM’s global sales strategy, GM has actually lost major export markets, including Southeast Asia, and has difficulties in securing its markets. In short, GM is preparing for the withdrawal from the Korean market through the phased production reduction.”

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Re: PSA buying GM's Opel

Why GM Should Probably Sell its Korean Division Next…
GMi

by Michael Accardi - May 5, 2017

There are reports coming from Korea that GM could withdraw from the local market after posting an almost $500 million operating loss last year, a third consecutive in the red.

Following the losses, the company announced a voluntary retirement program for employees on the business side–the fifth since 2009– leading some to speculate the two are more than strongly related.

According to Business Korea, the company has watched its exports plummet after Chevrolet went extinct in the Old World and GM pulled out of Russia at the end of 2015– exports are down some 200,000 units from 620,000 in 2013. In particular, the loss of the Chevrolet Orlando is being pointed at as the prime cause of the company’s woes.

First being discontinued in key global markets before GM pulled the plug on Orlando production at its plant in Gunsan, Korea earlier this year, opting instead to import the redesigned Chevrolet Equinox to better suit shifting tastes and regulations.

The same rumors also indicate GM Korea could close its Gunsan plant as an opening salvo to its phased production reduction. Doing local production no favors, labor costs have surged more than 50% during the last five years, coinciding with a 20% shrinkage in demand.

Exacerbating problems, GM has been at war with its local workforce since 2010 and according to the company’s most recent 10-K filing, is on the hook for more than $600 million relating to Korean labor suits.

Tying the theory into a nice little bow is the role of the Korean Development Bank.

When GM first bought Daewoo in 2002 KDB became not just a creditor, but also the company’s second-largest shareholder, agreeing to stipulations effectively tying the two companies together until October 2017. Once the term expires GM is free to sell the entirety of its Korean division to whoever wants it.

KDB has floated GM Korea close to $2 billion since the partnership began but has seen the value of its company holdings decrease violently in the last few years. A reevaluation of its shares in 2016 revealed the equity value of its 17.02% share had cratered 75% since 2014.

If there’s actually a bullet heading for GM Korea’s brain, the trigger was probably pulled by the same hand that originally saved what was then known as GMDAT during the 2009 economic massacre.

The day SAIC indirectly saved GMDAT was the day SAIC effectively killed GMDAT.

Ironically, there’s no such thing as SAIC-GM without GMDAT. The Korean arm had been used for years to help establish operations in China’s emerging market through technology transfers, expertise sharing, and production knowledge; at one point it accounted for 80% of SAIC’s products in China.

Korea and China were supposed to be a profitable pairing for the General, and they were, almost immediately; GMDAT handling design and engineering work while simultaneously ensuring all intellectual property stayed within GM, leaving SAIC responsible for manufacturing the low-cost parts needed to assemble the Complete Knockdown Kits coming from Korea.

But when GMDAT suffered $2 billion in losses on derivatives related to the value of the Korean won, the recently reborn GM needed cash for its Asian lynchpin but was forbidden from using its $50 billion in TARP funds on foreign operations. So GM reached out to SAIC, selling a 1% stake in the 50:50 joint venture with Shanghai in exchange for helping the company secure a $400-and-something-million line of credit from Chinese creditors in order to acquire all of the 162,689,343 new shares GMDAT was issuing as part of recapitalization efforts.

What Shanghai really bought for nearly half-a-billion dollars in late 2009 wasn’t 1% of a highly lucrative joint venture, but greater strategic significance within GM’s global orbit.

A new joint venture into India; establishing the SAIC-GM Sales Company in which the Chinese had control of the balance sheet; an agreement in 2010 to develop a dual-clutch transmission and a new family of small engines for global consumption; and worst of all, Gamma II started showing up in SAIC-GM developed products. SAIC was starting to grow independent.

The following year, GM upped its stake in an existing joint venture with SAIC and Wuling, feeding Baojun– an economy brand focused on smaller Chinese cities—intellectual property for zombie Daewoo platforms, while making a relative killing selling Wuling’s micro-vans as Chevrolets outside of China.

The coupe de grace, however, wouldn’t come until 2015, when GM announced not just the decision to import the made-in-China Buick Envision and Cadillac CT6 PHEV to North America, but more importantly, the decision to design and develop a global small-car architecture in China.

Post-2019, basically all GM’s B- and C-segment cars and sport utility vehicles sold outside the United States will come from the GEM program, specifically replacing mechanical platforms developed by Opel and GM Korea.

It’s believed the program’s planned production volume hovers around the 2.3 million vehicle mark, of which more than half are earmarked to stay in China. SAIC-GM’s Pan Asia Technical Center is doing the development work for all emerging markets and has rapidly become GM’s leading engineering, manufacturing and design partner in Asia, India, South-America, and Africa.

Korea was supposed to specialize in smaller cars, developing them faster and cheaper than GM’s perpetually plagued (and now sold) Opel division in Europe; but instead 15 years later it’s struggling to find its sui generis among alongside the Shanghai money machine.

However, it’s unlikely that GM will abandon Korea altogether– for example, exterior and interior styling for the Bolt EV was led by GM’s team there and Chevy uses Korean sourced motors and batteries in the Detroit built 238-mile EV–but it could probably pull up roots on hardcore engineering and production without much ill effect on operations.

When it comes to global ops, SAIC is the future.

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another 2 (TWO) bite the dust

^ Korea not next but GM goes from global 'octopus' to 'starfish' to...

GM to stop sales in India, exit South Africa
The Detroit News
, Melissa Burden, May 18, 2017


General Motors said early Thursday it will stop selling vehicles in India — one of the world’s largest sales markets — and will sell its South Africa business to Isuzu Motors Ltd. as it aims to focus capital in areas that can drive stronger financial performance.

The moves follow several others in recent years by the Detroit automaker to exit markets it sees as unprofitable. GM’s International Operations, aside from China, have been a drag on the company’s earnings for several years. GM shares were down slightly in pre-market trading.

In India, GM will continue to build vehicles at its plant in Talegaon, but for export only to Mexico and Central and South America. GM said it will withdraw its global Chevrolet brand from India and South Africa by the end of the year.
Reuters: General Motors plant in Talegaon, about 118 km (73 miles) from Mumbai Sept3,2012

“These actions will further allow us to focus our resources on winning in the markets where we have strong franchises and see greater opportunity,” GM President Dan Ammann said in a statement.

The Detroit automaker had planned to invest heavily in India, but said the change came after an extensive review of GM’s International Operations including in India that began nearly a year ago. Last month, GM stopped manufacturing at its Halol Assembly Plant in India. It also has a technical center that performs global work for GM and it is unaffected by the announcement.

In 2015, GM said it would invest $1 billion in India to produce 10 new Chevy vehicles over five years. At the time, GM was banking on doubling its market share by 2020, when analysts predicted India would become one of the world's three largest auto markets globally.

“In India, our exports have tripled over the past year, and this will remain our focus going forward,” GM International President Stefan Jacoby said in a statement. “We determined that the increased investment required for an extensive and flexible product portfolio would not deliver a leadership position or long-term profitability in the domestic market.”

In South Africa, GM said Isuzu will buy GM’s Struandale plant in Port Elizabeth, its 30 percent shareholding in the Isuzu Truck South Africa joint venture and a GM distribution center. Isuzu also will assume control of a parts distribution center in the country. GM had had a presence in the region since 1913 and began making vehicles there in 1926.

“We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities,” Jacoby said in a statement.

GM said the actions will save it $100 million annually. In the second quarter, GM will take special charges of about $500 million for the actions.

In the past few years, GM has opted to pull its Chevrolet brand largely from Europe; opted to leave Russia; cease manufacturing in Indonesia and Australia; restructure in Thailand; and just last month announced it would cease operations in Venezuela after government authorities seized its lone factory there.

“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” GM Chairman and CEO Mary Barra said in a statement. “We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility.

“Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term.”
.
 

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Re: another 2 (TWO) bite the dust

^ Korea not next but GM goes from global 'octopus' to 'starfish' to...

GM to stop sales in India, exit South Africa
The Detroit News
, Melissa Burden, May 18, 2017


General Motors said early Thursday it will stop selling vehicles in India — one of the world’s largest sales markets — and will sell its South Africa business to Isuzu Motors Ltd. as it aims to focus capital in areas that can drive stronger financial performance.

The moves follow several others in recent years by the Detroit automaker to exit markets it sees as unprofitable. GM’s International Operations, aside from China, have been a drag on the company’s earnings for several years. GM shares were down slightly in pre-market trading.

In India, GM will continue to build vehicles at its plant in Talegaon, but for export only to Mexico and Central and South America. GM said it will withdraw its global Chevrolet brand from India and South Africa by the end of the year.
Reuters: General Motors plant in Talegaon, about 118 km (73 miles) from Mumbai Sept3,2012

“These actions will further allow us to focus our resources on winning in the markets where we have strong franchises and see greater opportunity,” GM President Dan Ammann said in a statement.

The Detroit automaker had planned to invest heavily in India, but said the change came after an extensive review of GM’s International Operations including in India that began nearly a year ago. Last month, GM stopped manufacturing at its Halol Assembly Plant in India. It also has a technical center that performs global work for GM and it is unaffected by the announcement.

In 2015, GM said it would invest $1 billion in India to produce 10 new Chevy vehicles over five years. At the time, GM was banking on doubling its market share by 2020, when analysts predicted India would become one of the world's three largest auto markets globally.

“In India, our exports have tripled over the past year, and this will remain our focus going forward,” GM International President Stefan Jacoby said in a statement. “We determined that the increased investment required for an extensive and flexible product portfolio would not deliver a leadership position or long-term profitability in the domestic market.”

In South Africa, GM said Isuzu will buy GM’s Struandale plant in Port Elizabeth, its 30 percent shareholding in the Isuzu Truck South Africa joint venture and a GM distribution center. Isuzu also will assume control of a parts distribution center in the country. GM had had a presence in the region since 1913 and began making vehicles there in 1926.

“We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities,” Jacoby said in a statement.

GM said the actions will save it $100 million annually. In the second quarter, GM will take special charges of about $500 million for the actions.

In the past few years, GM has opted to pull its Chevrolet brand largely from Europe; opted to leave Russia; cease manufacturing in Indonesia and Australia; restructure in Thailand; and just last month announced it would cease operations in Venezuela after government authorities seized its lone factory there.

“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” GM Chairman and CEO Mary Barra said in a statement. “We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility.

“Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term.”
.
I've seen this coming here in SA for the past few months. I also think that this move will be the final nail in the coffin for Holden
 

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Wut the heck?

GM Slams the Brakes on Opel Sale!?!
TTAC
, By Steph Willems on May 30, 2017


The handover of General Motors’ European operations and creation of a new Opel corporate identity, which was expected later this week, has come to a screeching halt.

As part of the $2.3 billion sale to France’s PSA Group, GM’s longtime German subsidiary will take on the name Opel Automobile GmbH — but not until the two companies clear a big hurdle. It seems the problem comes down to a tale of two development centers: one owned by GM, the other by PSA.

Opel’s Rüsselsheim, Germany development center, which brought American buyers past (and future) Buick Regals, is just one of the assets being handed over to PSA. However, the company’s works council has specific demands for those workers.

According to Automobilwoche, the council, plus German labor union IG Metall, wants to keep a certain number of workers employed at Rüsselsheim, despite the fact that some of the center’s work will overlap with work being performed by PSA’s 13,000 development employees. The union wants a guarantee that 7,700 workers will keep their jobs at the Opel center. As well, it wants...to continue performing work for GM until 2020, which could account for 30 percent of the center’s output.

PSA wants the next-generation Opel Corsa compact to ride atop a PSA platform. However, Opel wants to develop the model’s successor, as well as an SUV based on the Opel Insignia midsize sedan.

Wolfgang Schäfer-Klug, chair of the Opel Works Council, has claimed the issue isn’t disputable. As a result, employee information sessions planned for this week have reportedly been cancelled and the deal has seen its ratification date pushed back. Opel still expects the handover to be completed by the end of this year.
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Re: (IS) PSA buying GM's Opel (STILL?) guess so!

no idea what happened with the above :angel but...

PSA's Opel Merger To Be Complete In August
AutoVerdict
- Nick Saporito - July 12, 2017


Reports indicate The PSA Group's planned acquisition of General Motors' Opel division is slated to be complete by the end of August. The news means the merger that will create Europe's second largest automaker is moving ahead of schedule.

Some changes at Opel have already been seen, despite still being under GM ownership for now. Dr. Karl-Thomas Neumann, who served as Opel's CEO under GM's leadership, has already resigned. While Neumann will stay on the Opel board through the completion of the merger, PSA has already confirmed its finance chief Michael Lohscheller will take over as Opel's CEO.

The $2.3 billion deal between PSA and GM is designed to offload the money-losing Opel operation from GM's balance sheet, while providing PSA needed economic scale to enhance its own profitability into the future. The company is hoping to achieve over a billion euros in cost savings between the two automakers by 2026, some of which will be achieved by 2020.

The European Union has already provided an "unconditional" approval of the deal between GM and PSA, meaning the deal is ready to finalize as soon as both parties are comfortable with the terms and plan.
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it's all over now, baby...

PSA Group's purchase of Opel and Vauxhall completed
The French car giant has confirmed its purchase of Opel and Vauxhall from General Motors; PSA chief asserts that "Vauxhall will remain British"

AutoCar.co.UK
- Greg Kable - 1 August 2017


The PSA Group, which makes Citroën, DS and Peugeot cars, has completed its purchase of the Vauxhall and Opel brands.

The move, which was first announced in March, makes PSA the second-biggest-selling car group in Europe after Volkswagen. Enlarged PSA now has a 17% share of the European market.

Following the announcement this morning, PSA said it will present a detailed business plan for Vauxhall and Opel in early November and added that the intention was to return to the two brands to profit...

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Re: (IS) PSA buying GM's Opel (STILL?) update!

via Stéphane Dumas @GMi
not new-news but maybe still accurate...


Opel’s future in SA secured! ...afaik, nothing to do with GM
CarMag.co.ZA
- Ryan Bubear - June 14th 2017


Opel has announced that the Williams Hunt group has been appointed as the brand’s official distributor in South Africa from January 2018.

The news comes after uncertainty around Opel’s future in South Africa, with General Motors last month announcing that it would cease operations in the country, pulling the Chevrolet brand from the market.

General Motors, of course, is in the process of selling Opel to the PSA Group (which runs the Peugeot, Citroën and DS brands), with Opel’s global CEO having quit earlier this week.

Opel South Africa also revealed that it planned to expand its product offering, with the Crossland X set to be launched locally before the end of 2017. The larger Grandland X is scheduled to follow in 2018.

Williams Hunt has had a presence in South Africa since 1903 and is now part of the Unitrans Automotive Group, a division of Steinhoff International. The group promises that it will service Opel buyers with 35 dealerships across the country...
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PSA & Opel: BUT WE KEPT OUR RECEIPT!!

PSA Seeking Refund From GM Over Opel Acquisition
AutoVerdict
- Nick Saporito - Nov 29, 2017


French automaker PSA Group is reportedly seeking a refund from General Motors against its acquisition the Opel and Vauxhall brands earlier this year. The request comes as PSA says it was misled regarding Opel’s position relating to meeting strict CO2 emissions regulations now and into the future.

The story, broken by Reuters, alleges that PSA is going to seek 600-800 million euros from GM, which is nearly half of the acquisition price the company paid for Opel back in July when the deal closed.

Thus far PSA Group has not filed a formal request with GM for the refund, but the grievances have been discussed by the two parties.

PSA’s allegations stem from what it says was misleading information regarding Opel’s emissions strategy going forward. By 2021 the European Union will implement a new emissions target of 95 grams per kilometer, down from today’s 130 grams. This significant reduction is the source of the feud, as PSA claims GM said Opel was going to be able to meet this target.

Upon further inspection of Opel’s plans after it took possession of the company this summer, PSA says that isn’t the case. Instead, Opel will miss the 2021 target and it says GM’s strategy for meeting it was under unrealistic assumptions. Specifically, the company was forecasting high sales of the Ampera-e, an all-electric vehicle based on the Chevrolet Bolt EV.

Failure to achieve the new emissions targets will subject the automaker to significant fines, which could be up to 1 billion euros if targets are missed by sizable amounts.

PSA’s realization regarding Opel emissions has caused the company to significantly rework its product strategy. The company says all Opel products will be replaced with its engines and technology by 2024, three years ahead of the original schedule. The company is also quickly working on electrified versions of the Opel Corsa, Garland X and Crossland X that were not originally planned.

PSA says these changes are costing them a lot of money, motivating them to pursue a possible refund from GM to help fund them.

A GM spokesman told Reuters PSA conducted a robust due diligence process prior to finalizing the deal. People familiar with the matter say GM did not allow Opel employees to talk to PSA during the deal, instead all due diligence requests were handled by GM headquarters in Detroit.

According to the actual acquisition contract, grievances such as this will have to go through arbitration if PSA opts to formalize their complaint. If any deal is reached during arbitration, GM will treat the payment as a refund of the deal for tax purposes.

Any refund on GM’s part will simply escalate an already high bill on the company’s European exit. GM has spent about $6 billion to shed Opel, $5.5 billion of which is in the form of writing down Opel from the books. GM also had to commit 3 billion euros into Opel’s pension fund as part of the deal.

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Discussion Starter #57
So, PSA didn't do their homework before buying Opel. If a main issue was forecasting sales of electric cars, then PSA should have done their own evaluations of what they considered correct estimates. They had access to all the data...someone at PSA wanted the deal done regardless.
 
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