Official – Groupe PSA Snaps Up Opel And Vauxhall – Holden Supply Included

Holden's future supply deal from European sibling Opel has been assured, for now, despite the former General Motors arm for Euro markets now falling into French hands.

As predicted, Groupe PSA - which includes Peugeot, Citroen and DS - has acquired both Opel and Vauxhall from GM in a deal worth more than $3 billion.

A joint statement issued by PSA and GM said the move will make it cheaper to develop and build future vehicles by distributing costs across five brands.The takeover could also help arrest Opel's under-performing run, making it profitable once again.

Together, the entities will form Europe's second-largest car company, sitting behind the Volkswagen Group and ahead of the Renault-Nissan Alliance.

PSA chair Carlos Tavares said a projected $2.4 billion in savings over the next decade will not be made through job cuts, and that his company will respect the "strong heritage" of Opel and Vauxhall.

"We intend to manage PSA and Opel/Vauxhall capitalising on their respective brand identities," Tavares said.

"We are confident that the Opel/Vauxhall turnaround will significantly accelerate with our support."

Opel boss Karl-Thomas Neumann told journalists it was "an emotional day" for his company, adding that Britain's Brexit decision prevented it from breaking even in 2016.

Industry