GM may buy 7% of Peugeot according to rumors in the press. It is hard to say what value the transaction would have. GM’s Opel unit in Europe has continued to loss market share and has lost money for five years. It would like to layoff workers and consolidate factories, but is up against trade unions, and probably governments who want to stop actions which would increase unemployment.
Peugeot and Opel might share some production facilities to save money. Such as action would also meet with union objections.
The Achilles Heel of the deal is that both Opel and Peugeot are doing poorly in the region. 1+1 would probably not equal 2
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