Opel CEO Says GM-PSA Joint Venture Negotiations Back On

The original plan for General MotorsGMUnited States of America, 1998 > present8 models
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and PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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to form a joint venture, which would have divested control of OpelOpelGermany, 1863 > present85 models
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and VauxhallVauxhallUnited Kingdom, 1857 > present31 models
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away from GM, was cancelled when PSA took a large French government loan that put government officials and labor leaders on the company's board of directors. Now, interim Opel CEO Thomas Sedran says that the joint venture talks are back on but have been modified so that Opel and Vauxhall and PSA would not share factories; they would only develop cars together and share equipment. 

"The quality of the talks is really very good. And the operational and technical advantages are so great that we will surely will be able to wrap up soon the negotiations on joint vehicle development.

The plan is to come up with four new model series by 2016/2017: a successor to the Opel ZafiraOpel Zafira Gen.3 [C]Germany, 2011 > present77 versions
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minivan, two compact cars and a successor to the mid-sized Opel InsigniaOpel InsigniaGermany, 2003 > present409 versions
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and Citroën C5Citroën C5 Gen.2France, 2007 > present117 versions
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," said Sedran.

In the short term, Opel will begin marketing heavily in Eastern Europe and Russia. These markets have been growing more rapidly than Western Europe. In the longer term, Opel would like to expand to China, but high Chinese car tariffs mean that it is only economical with a factory there. That is too expensive for Opel at the moment. 

Source: Automotive News Europe