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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

Reuss says Cadillac CT6-based Buick could happen

Could the upcoming Cadillac CT6 and its Omega platform spawn a Buick variant? According to General Motors' product chief Mark Reuss, it could potentially be in the cards, but "not yet." "We're working on that," Reuss told Automotive News at the 2015 New York Auto Show. While there hasn't been a large, rear-drive Buick on dealerships since the Roadmaster in 1996, the company gave a big hint that it could head in that direction with the Avenir Concept, shown earlier this year at the Detroit Auto Show. As Automotive News explains, a rear-drive Omega-platform Buick could be a real hit in China, where consumers buy 13 Buicks for every one Cadillac. That move would be a big help to GM's bottom line, too, as it'd significantly increase the Omega platform's economy of scale. If a large Buick based on the CT6 were to head to China, though, it likely wouldn't be a simple case of badge engineering (thank God). Reuss hinted to Automotive News that while the mixed-material construction of the CT6 platform "is very flexible," doing an "identical version of that platform or not is a different conversation." What are your thoughts? Should Buick adopt the Omega platform for an Avenir-based sedan? Should that vehicle be sold here in the US, or should it be a China-only offering? Have your say in Comments. Related Video:

38k GM eAssist hybrids recalled for circuit board, fire risk

General Motors has issued a recall covering 38,197 2012 and 2013 model-year Chevy Malibu Eco, Buick LaCrosse and Regal sedans equipped with eAssist, and sold in the United States. The automaker will check the generator control module for proper operation. Only vehicles built before December 2012 are being recalled.
According to the automaker, a malfunctioning generator control module could slowly drain the battery, causing an indicator to light up in the dash. If that indicator is ignored, the driver may experience a stalling engine, and in some cases, "a burning or melting odor, smoke, and, in rare instances, a fire in the trunk."
GM says the issue is not with the eAssist battery pack; the smoke and fire comes from overheating of the control board. One trunk fire has been reported, but no injuries are known. Scroll down below for the official press release from GM.