GM, Peugeot Will Share Car Designs, Purchasing

[Jason M. Hendler]

GM, Peugeot Will Share Car Designs, Purchasing

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[Henry_FL]

You would have thought the bankruptcy of GM would have cured them from wasting money investing an other money losing car company's. They should have shutdown Opel, instead its the gift of losses that keeps giving

[supermachoman]

I have to wonder if this is precipitated by GM's recent quarterly profit reports where they revealed they had taken a loss on their European operations. Maybe they figure brand recognition could take them over the hump.

[Bob_Livonia]

Unbelievable, or ill-conceived at best, considering all the losses GM has had with Fiat ($2 billion) and Saab. GM can't get rid of its masochist tendencies. GM has lost over $10 billion in Europe over the past 10 years - something has to give! Analyst John Murphy says "the speculated alliance with Peugeot would be more of a deeper dive into a thicket than a solution".

[Noel Park]

You would have thought the bankruptcy of GM would have cured them from wasting money investing an other money losing car company's. They should have shutdown Opel, instead its the gift of losses that keeps giving

Alas, it's hard to argue with that. OMG!

[davidbrannon]

Unbelievable, or ill-conceived at best, considering all the losses GM has had with Fiat ($2 billion) and Saab. GM can't get rid of its masochist tendencies. GM has lost over $10 billion in Europe over the past 10 years - something has to give! Analyst John Murphy says "the speculated alliance with Peugeot would be more of a deeper dive into a thicket than a solution".

So true. And why the hell not ally themselves with a CHINESE car company if there must be M&A activity? Really, it's the best market for GM, plus they may be able to avoid some of those tariffs and mandatory tech disclosures that makes any dealings with China an absolute nightmare for a cororation. Not looking so hot from the outside here, GM.

[BeechBoy]

You would have thought the bankruptcy of GM would have cured them from wasting money investing an other money losing car company's. They should have shutdown Opel, instead its the gift of losses that keeps giving

Its not so simple. Opel helped design many of the Buicks that are now selling like hotcakes. By shedding Opel GM would also loose a significant design capability and a major presence in Europe that is a large auto market. I read the Peugeot thing as a low level cooperation where they will simply share parts and production facilities to lower costs.

[Henry_FL]

GM would also loose a significant design capability and a major presence in Europe that is a large auto market.

That large market has been losses year after year, there is to many players. Opel, with their sky high manufacturing costs will never be profitable, the efficiency is hampered the the EU's view on 6 week vacations and other perks that just can't be sustained in a global market

[stuart22]

Unlike Opel which Germans consider a bottom tier brand, the Peugeot brand is respected among the nationalistic French people, and has presence in parts of the world where GM may be lacking such as Africa.

That said, I have no idea where this is going.