Peugeot and the Purchasing of Opel-Vauxhall: The Potential Systemic Effect of Expansion
Less than 2 weeks ago it was announced that the French group PSA, owners of popular car firms Peugeot and Citroën, were in talks with America’s General Motors over the sale of its loss-making European business Opel (whose U.K. arm is branded as Vauxhall). In this post, the focus will not be on the potential issue regarding the protection of workers after a takeover, something which has been dominant in the British press, but rather on the potential systemic effects that may result from the further acceleration of PSA’s growth. Whilst the issue regarding the safeguarding of employees' positions and, crucially, their pensions is of the utmost importance, the recent news is that the jobs and the pension fund (albeit currently operating at a deficit of £840 million ) will be safeguarded until 2021 , which in the current turbulent climate is relatively secure unfortunately. So, for this post, the focus will be on a potential issue that is currently developing, and will arguably be ...