General Motors, Peugeot Deal May Not Be So Likely
We caution against too much enthusiasm on the news of GM possibly selling Opel and Vauxhall.
GM and Peugeot have a recent past, with GM announcing a 7% equity stake in the French automaker in February 2012. GM then sold these shares in December 2013 for a $152 million gain as GME brought in new leadership after the investment of Peugeot, current GME President Karl-Thomas Neumann, who came from Volkswagen in March 2013. We suspect Neumann was not as enthusiastic about the Peugeot investment as then-GM vice chairman Steve Girsky was. Girsky has since left GM and its board. Current CEO Mary Barra may also not have liked the deal, as she became CEO the month after GM sold its stock.
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