Skip to main content

Peugeot-Citroen is evaluating a full takeover of GM's German Opel division

2016 Opel Adam S
Ronan Glon/Digital Trends
Paris-based PSA Peugeot-Citroen has confirmed it’s evaluating ways to deepen its collaboration with General Motors’ Germany-based Opel division. Surprisingly, one of the options officials from the French automaker are looking into is a full acquisition of Peugeot’s longtime rival.

“PSA Group confirms that, together with GM, it is exploring numerous strategic initiatives aimed at improving its profitability and operational efficiency, including a potential acquisition of Opel,” the company wrote in a statement published online. GM published the exact same statement.

PSA declined to reveal when the talks began, or when a final decision will be made. The company simply stresses that it hasn’t come to an agreement with GM yet, and it is not guaranteeing the talks will lead to a deal. However, sources familiar with both companies’ plans told Reuters to expect a formal announcement in the coming days.

Peugeot-Citroen and Opel began collaborating in March 2012 when GM purchased a 7 percent stake in the French company. The alliance was short-lived, and GM sold all of its shares in PSA just a year later after a disagreement over the latter’s Iranian operation. The two partners have nonetheless continued to co-develop and co-produce several models.

Notably, the recently introduced Opel Crossland X will share many parts with the next Citroen C3 Picasso, which will debut as a close-to-production concept next month at the Geneva Auto Show. The next Peugeot 508 is expected to ride on the same platform as the brand-new Opel Insignia. Additionally, some Opel models are built by PSA and vice versa. The synergies help the two automakers — which were both in dire financial straits a couple of years ago — benefit from economies of scale.

Opel briefly sold cars in the United States in the 1960s and 1970s, but it’s far from a household name here. However, American motorists are likely familiar with at least some of Opel’s cars — including the Astra and the Cascada — because they’ve been sold in Saturn and Buick showrooms in recent years. Opel models are rebadged by Vauxhall in the United Kingdom, and many wear a Holden emblem in Australia.

Peugeot-Citroen will only get Opel and Vauxhall if the purchase is agreed upon, an Opel spokesperson told Digital Trends. That means the deal will undoubtedly have an impact on Buick and Holden, but it’s too early to tell how far-reaching it will be.

Editors' Recommendations

Ronan Glon
Ronan Glon is an American automotive and tech journalist based in southern France. As a long-time contributor to Digital…
EV vs. PHEV vs. hybrid: What’s the difference?
BMW X5 PHEV charge port

When sizing up options for your next car, you may be figuring out whether to get an electric vehicle, only to discover there are a bunch of variations to consider -- not just hybrids, but plug-in hybrids, extended-range electric vehicles, and fuel cell electric vehicles are just some of the other categories. The depths of EV jargon run so deep that we wrote an entire EV glossary, but for now let's zero in on the difference between electric vehicles, hybrids, and plug-in hybrids. These options blend old tech and new tech in a way that's often practical, cheaper than an EV, and still more efficient than an old-school gasoline car.
What is an electric vehicle?
An electric vehicle skips the internal combustion engine found in most traditional cars in favor of an electric motor. This allows EVs to operate without needing gasoline. Instead, they're powered by an electric battery that will need to be charged regularly, either at your home or at a charging station like a Tesla Supercharger. The Ford Mach-E, Kia EV6, and Rivian R1S are all popular examples of modern EVs.

The electric motor works by way of a rotating magnetic field. Inside the motor, three electromagnets surround a free-floating rotor, which spins based on which magnet is attracting it most. That rotor in turn produces power to the wheels of the car and pushes it forward and backward. Regenerative braking reverses the relationship and turns motion into electricity. While you're slowing to a stop, the force of the turning wheels spins the rotor and generates a charge via the electromagnets in the motor, which in turn goes up into the battery for storage. If you're curious, you can dig into the nuts and bolts of how an electric vehicle works.
What's the difference between a hybrid and a plug-in hybrid?
In short, a hybrid primarily relies on gas with an electric backup, while a plug-in hybrid relies on electric power with a gas backup.

Read more
You’ll soon be able to watch YouTube videos in your Android Automotive car
Android Auto in a car.

Google is making a bigger play for the in-car infotainment system. At Google I/O 2023, the company took the wraps off of a series of improvements to both Android Auto and Android Automotive, allowing those who want Google-based services in their car to get more features and better account integration.

As a reminder, the two systems may have a similar (almost identical?) name, but are actually quite different. Android Auto essentially just projects content from your phone, whether through a wireless or wired connection. It's Google's answer to Apple's CarPlay, and doesn't work without your phone. Android Automotive, however, is a version of Android that runs in the car itself, as the car's main infotainment system. It works whether you have a connected phone or not. Collectively, Google refers to the systems as Android for Cars -- yes, yet another name.

Read more
Are EVs safe? From battery fires to autopilot, here are the facts
Lucid Air electric car

While many people will be primarily concerned with EV range before buying their first electric vehicle, others are a little nervous about having a giant lithium-ion battery strapped to their car's undercarriage. Those things can catch fire -- just ask Chevy Bolt owners. But how much of a real danger is that? And should it prevent you from buying an EV?
What safety features do EV batteries have?
The major safety issue with lithium-ion batteries is their temperature. If they get too hot, they're prone to igniting. If they get too cold, they freeze and permanently stop working. Charge and discharge rates need to be carefully regulated too, or you'll get electrical fires. Over time, small imperfections in a battery's structure can lead to short circuits and reduced lifetime.

EVs have what are called battery management systems (BMS) to keep tabs on all of these variables. The BMS will generate warnings when needed and intervene directly by cutting off power if things get out of hand. EV battery packs also have thermal management systems. Typically, this is a closed loop of liquid coolant flowing alongside the battery cells, but air cooling and welding battery cells directly to the car chassis are also means of mitigating extreme heat.
How well do EVs handle a crash?
Since there's no engine at the front of an EV, the hood typically houses a frunk -- meaning a front trunk. This acts as a large crumple zone in the case of a head-on accident. One crash in Germany avoided casualties thanks to this inherent characteristic of electric vehicles. Crash tests bear this out. Popular EVs like the Tesla Model 3, Hyundai Ioniq 5, and Nissan Leaf have all received overall five-star ratings from the National Highway Traffic Safety Administration (NHTSA).

Read more