Big deals in the automotive business can be complicated and sometimes the buyer may not be told of the fine points. It seems that when GM advertised the sale of Opel/Vauxhall, it didn’t provide the prospective buyer – in this case PSA Group — relevant details about its real troubles. Business media reports from Europe suggest that Opel for which Peugeot paid 1.3bn Euros for earlier this year and after engineers discovered the brand’s emission challenges were impossible to meet with the existing set-up, the acquisition deal leaves a sour taste for the French Group.
To keep the ball rolling, Peugeot will have to pay massive fines or spend a fortune updating the entire Opel line-up to meet the strict emission legislation that comes into effect in less than a decade. And PSA Group isn’t interested in either option. The next best thing PSA could think of is to approach the former owner and ask for compensation for let’s say non-disclosure of facts.
According to sources close to PSA, the automaker said GM misrepresented Opel’s CO2 details during sale negotiations. Opel was nowhere near on target to meet emission standards in the EU under GM leadership. According to the most recent study published last year, Opel was on track to miss its emission targets by 3.7gm with the Ampera-e. Without it, the figure shot up to 6gm, but, PSA quickly discovered the figure is actually around 10gm and the plan proposed was based on unrealistic amounts of diesel-vehicle sales. It is reported that PSA Peugeot-Citroen is asking General Motors for over half a billion euros over allegations that Opel is in worse trouble than advertised.