Opel Touts “Industrial Logic” of Sale to PSA

Opel CEO Karl-Thomas Neumann tells employees in a letter that merging the General Motors Co. unit wiith PSA Group would create Europe’s second-largest carmaker and “forge a European champion,” Bild reports.

He adds that “all parties involved understand the industrial logic” for a sale, which would form an entity that controls nearly 17% share of the European market.

GM and PSA revealed the possible acquisition on Feb. 14. They have been scurrying to build employee and government support for the plan since then. Neumann says Wednesday talks with GM CEO Mary Barra and President Dan Ammann, who also chairs the Opel supervisory board, were “very constructive.”

Neumann also assures Opel’s powerful works council that it and the IG Metall union will be an integral part of assessing the would-be sale. Manager Magazin says PSA proposes to retain Neumann and Opel’s current management board and continue to operate Opel as a German company.