PSA Group is edging ever closer to purchasing General Motors European Operations in a move which will see PSA become Europe’s second-largest automaker.
Bloomberg reports that the two companies will negotiate throughout the weekend to reach and announce a deal on Monday. As further evidence that the deal is progressing, a tentatively-scheduled meeting between European labor union officials and PSA management has been set for next week.
PSA’s chief executive Carlos Tavares is confident that he can create a restructuring plan to return Opel and Vauxhall to profitability and one that will allow Opel to serve as the company’s premium German alternative to its solely French brands.
Before a deal can be reached, a few key issues need to be resolved. For one, a negotiating point will revolve around how PSA can achieve 2 billion euros (£1.75 billion) in savings from the deal as well as how the pension plan for retirees (currently underfunded by $7.35 billion) will be managed.