What were to happen to Opel, Peugeot and Citroen if the three brands were to basically condense into one group, with just use one or two platforms shared between the lot and interchangeable badges? Sounds a bit sad for the Opel, Peugeot and Citroen purists now doesn’t it, but in the current European decline, this might very well be the way to go. This plan would come into action should General Motors (GM) purchase a 30% stake of a proposed joint venture.
Rather worryingly, this is the least extreme of three different plans. General Motors made the move of forming an alliance with PSA Peugeot Citroen by purchasing 7% of the French automaker’s stock earlier this year in March. The deal centred on sharing vehicle platforms, components and modules; and joint purchasing of commodities and components.
Things have gone from bad to worse with the European economy since then and some poor financials have seen PSA’s stock price drop heavily. Despite this, GM says they remain committed to the deal and they want to see the alliance deepen. In a recent report by Reuters, the media agency claims GM and PSA are discussing closer integration of their respective and struggling European units. In particular, GM is looking at merging Opel and Peugeot’s manufacturing operations.
The sources in the Reuters report claim that the three possible scenarios for a merger would include: GM selling Opel to Peugeot; GM buying Peugeot’s automotive business; or Opel and Peugeot merging into a joint venture. Of the three scenarios, the latter is probably the most likely should the two companies chose to deepen their relationship.
Another benefit of the merger would be the realisation of the original alliance’s deal to focus on small and mid-size passenger cars, MPVs and crossovers, as well as developing a new common platform for low-emission vehicles. For what it’s worth, we think the collaboration sounds like a snug, if slightly contrived fit. Nothing gets you out of a slump like good product. This might be the only way forward for the struggling European brands.
