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It's official: GM selling Opel-Vauxhall to Peugeot-Citroen group for $2.3B

It's a Brexit for General Motors. GM is selling off its Opel and Vauxhall unit, it confirmed today, ending 90 years of automobile production in Europe, and nearly two decades of losses from that division. The deal was announced on the eve of the Geneva Motor Show. The focus for GM now becomes North America and China. "This was a difficult decision for General Motors," CEO Mary Barra said. "But we are unified in our belief that it is the right one." "For GM, this represents another major step in the ongoing work that is driving our improved performance and accelerating our momentum. We are reshaping our company and delivering consistent, record results for our owners through disciplined capital allocation to our higher-return investments in our core automotive business and in new technologies that are enabling us to lead the future of personal mobility." The buyer is French automaker PSA Groupe, maker of Peugeot and Citroen as well as its DS luxury sub-brand. The $2.3 billion deal will make PSA the second-biggest European manufacturer after Volkswagen, with 17 percent of the market share. "We want to create a European automotive champion," said PSA Groupe Chairman Carlos Tavares. "We will totally unleash the potential of the Opel and Vauxhall brands." Tavares gave assurances that jobs would not be lost in the deal. "We respect all that Opel/Vauxhall's talented people have achieved as well as the company's fine brands and strong heritage. We intend to manage PSA and Opel/Vauxhall capitalizing on their respective brand identities." The two companies have agreements for PSA to continue to supply some Holden and Buick models; it's not yet clear exactly how this will work, as Opel models form the basis for several of Buick's core products, including the Encore small crossover and Regal sedan. PSA also is purchasing GM's financing operations in Europe as part of the deal. GM may invest in PSA shares in the future, and the two companies may collaborate on electric and fuel-cell vehicles as part of GM's joint venture with Honda. The sale of Opel and Vauxhall brings GM's global brand total down to eight, including three that are specific to the Chinese market. Buick GM Citroen Opel Peugeot Vauxhall 2017 Geneva Motor Show

Cadillac, Buick and Chevy decisions impacted by worries abroad

European Concerns Drive GM, But Beware Of The French Connection
GM's bid to rationalize Europe will impact the products that will be offered domestically.
It seems that Europe is defining the future of General Motors more so than its home North American market. Having axed Saturn, Pontiac and Hummer, GM has done a fairly good job of repositioning its remaining four divisions, Cadillac, Chevrolet, Buick and GMC. Cadillac carries the luxury banner. Chevrolet is aimed at the masses with cars and trucks along with a nod to performance thanks to Camaro and Corvette. Buick bridges the premium gap between Chevy and Cadillac, while GMC offers a hardcore work/upscale proposition.

Little-bit-bigger 2020 Buick Encore GX gets two three-cylinder engines

Ford broke the ice on selling three-cylinder engines in the U.S. with the 2014 Fiesta, then followed up with the EcoSport. Buick is about to widen that supermini-sized crack in the ice with the 2020 Encore GX. The semi-subcompact crossover will come in three trim levels that mix-and-match two turbocharged three-cylinder engines, two transmissions, and two drivetrains. The smaller engine is a 1.2-liter three-pot with 137 horsepower and 166 pound-feet of torque. This comes in one horse and 18 lb-ft of twist beyond the 1.4-liter four-cylinder in the smaller Encore. This engine will only be paired with a CVT and front-wheel drive in the Preferred, Select, and Essence trims. The meatier motor is a 1.3-liter three-cylinder with 155 hp and 174 lb-ft. That's down on the 163 hp and 177 lb-ft that the same engine produces in the Chinese-market version of the Encore GX. However, it gets buyers close to the 1.4-liter turbocharged four-cylinder that used to be optional on the smaller Encore, producing 153 hp and 177 lb-ft. This engine can be optioned on the front-wheel drive Select and Essence trims, where it would be mated to the CVT. The 1.3-liter three-cylinder is standard on all trims optioned with all-wheel drive, where it gets paired with GM's nine-speed automatic. GM does say the horsepower figures are estimates at the moment, so don't be surprised at any slight changes before deliveries begin next year. The Encore GX will serve buyers who would love it if the Encore had a bit more room but don't want to step up to the Envision. For a price GM hasn't announced yet, the Encore GX will reward those buyers with five more feet of cargo space, and some extra power for all those who decide to level up further. The junior Encore weighs just over 3,200 pounds, it's likely the Encore GX will shade that some. The Encore GX does ride on GM's new VSS-F platform, though, so the advanced architecture could provide an overall superior experience even with the lesser three-cylinder. GM has also said that the Encore GX will come standard with safety kit like forward collision alert and lane keep assist with a lane departure warning, features that are cost extras on the Encore. The Encore GX will also include automatic emergency braking, which can't be had on the Encore at any price.