PSA pays GM $2.3 bn for Opel, sets recovery goals

Sale seals GM's exit from Europe

PSA Group has agreed to buy Opel from General Motors (GM) in a deal valuing the business at €2.2 billion ($2.3 billion), creating a new regional car giant to challenge market leader Volkswagen.

The maker of Peugeot and Citroen cars vowed to return Opel and its British Vauxhall brand to profit, with an operating margin of two per cent within three years and six percent by 2026 underpinned by with €1.7 billion in joint cost savings.

“We’re confident that the Opel-Vauxhall turnaround will significantly accelerate with our support,” PSA Chief Executive Carlos Tavares said in a statement issued by the two carmakers