PSA is seeking a return of around half the money it paid for Opel and Vauxhall because the brands’ emissions challenges are larger than anticipated

The PSA Group is said to be seeking a refund of between £529 million and £700m (€600-800m) from General Motors (GM) following its purchase of Vauxhall and Opel, in the belief that GM held back on fully explaining the severity of the brands' emissions challenges. 

According to Reuters, sources close to the sale report that PSA could be exposed to heavy fines if the problem is not solved by the time new EU regulations on emissions come into effect in 2020-21.

The new limits will be enforced with levies for manufacturers that aren’t compliant with the 95g/km fleet average CO2 limit. 

The solution to this would be shifting Vauxhall and Opel cars to PSA powertrains ahead of schedule. 

PSA accuses GM of misleading it over the challenges it will face in bringing the former GM Europe range into line with the 2020-21 limit and will use this as grounds for a legal claim. The claim has not yet been officially initiated, though. 

A GM spokesman told Reuters: “We are not aware of any claim submitted by PSA regarding future CO2 targets and we cannot speculate on issues that have not been raised with us. PSA undertook a robust due diligence process including their employees and many experts and lawyers. We provided them with substantial information.”

Autocar is awaiting comment from PSA. 

Read more: 

PSA Group purchase of Opel and Vauxhall completed with new financial company

Insight: Why has PSA bought Opel and Vauxhall?

PSA boss Tavares: "strong intention" to keep all plants open

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11

1 December 2017

PSA can't be serious. This is what due-diligence is all about. To claim now that they didn't understand about GM's capability indicates that they either didn't look in enough detail or they don't know how to engineer cars and powertrains.  Either way its a case of caveat emptor.

I suspect, though, that this is a smoke-screen precursor to closing the UK Ellesmere Port plant, amongst others.   Something along the lines of 'we now have to make all this extra investment, so we can't possibly maintain all of our plants, etc. etc.'

Maybe PSA aren't amateurs after all!

1 December 2017

PSA are trying it on,why is there any need to update the now ex GM engines, they have two options put PSA engines in Vauxall/Opel vehicles or just put these badges on current PSA products.

1 December 2017

Neither of the UK plants are closing, PSA has stated this with Luton to become the Companies lead in large van construction, and the other will continue to build the Astra, and PSA Group cars to assist with the Brexit fall out - and to be honest, each car has a listed CO2 figure whether online or in printed material, so the CO2 figures are easily obtainable, unless of course GM mis led everyone with figures that are and were not achieveable, i know which one i think.

 

1 December 2017
jonboy4969 wrote:

Neither of the UK plants are closing, PSA has stated this 

Oh, how niaive you are!  Its only a matter of when.

1 December 2017

Well if I worked in the Luton Plant I'd be worried the latest PSA van in the same catagory as the products made a Luton is a joint venture with Toyota. The products built at Luton on the other hand are built in collaboration with Renualt who are also of course French owned and PSA's main competitor in both home and export markets. So you don't have to be a winner of The Apprentice that it's going to be much more cost effective to screw Opel & Vauxhall badges to Citroen,Peugeot & Toyota vans than to keep what will soon be a non EU plant which at the same time builds produces vans for your main rival. This also is about producing product at Luton will incur EU import duties and costs will be vunerable to exchange rate fluctuations between Sterling & the Euro. So to say that Luton could  have a long term future is unlikely because no matter how productive it is,external factors will negate any productivity gains of the factory 

1 December 2017

PSA will inherit any agreement GM had with Renault and will have to stick to that or end it early of it can. It will either do that or maybe work with Renault on a replacement van (which might save both companies loads of cash). The PSA vans are no more a "joint venture" with Toyota than the Vauxhall vans are a "joint venture" with Renault, neither are joint ventures - the Toyota vans are simply rebadged PSA vans and the Vauxhalls simply rebadged Renaults. If it does end the agreement with Renualt early it might well use Luton for extra production of PSA vans and also badge them as Vauxhall/Opels.  Of course all this would have been decided long ago as Peugeot knew all this before it even looked at buying GM Europe.

1 December 2017

Dear PSA,

If I buy a Vauxhall will you give me half my money back?

Yours sincerely

Chris

PS Will you also sort out the new Viva Streetwise lookalike - why paint the front bumper but not the back one???

1 December 2017

PSA's allegation seems to be that GM deliberately withheld information during the due diligence process - if that's proved, GM will be liable.

The good news in the mean time is that this situation forces PSA to ditch GM powertrains and replace them with their own to get the emissions within the new limits - which will hit GM's expected revenue stream from IP licence fees.

1 December 2017

Diesel wise GM Europe uses Fiat engines, apart from the new 1.6 Whisper diesel which is a 2 year old GM design.

1 December 2017
typos1 wrote:

Diesel wise GM Europe uses Fiat engines, apart from the new 1.6 Whisper diesel which is a 2 year old GM design.

AFAIK, the Gm 1.6 Whisper diesel is a comprehensive evolution from the GM-Fiat Alliance engine which was itself evolved from Fiat JTD. GM Powertrain Torino, which developed it, remains part of GM and wasn't included in the sale to PSA.

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