Deep And Thirsty Throat: GM-PSA Deal Doomed, Girsky Tired, Wants Home

Rubbing shoulders with industry types displaced to a Chinese city called Chengdu has its good parts. You hear stories you normally don't see in a press release. An executive who works for the western partner of a large Chinese joint venture told me today that my story about Chinese interests killing the Opel deal between GM and PSA wasn't true. At least not completely. As so often, in the denial was a much more interesting story. After another drink for encouragement, said executive told me very much off the record that GM is tired of the PSA deal and wants out. If that means leaving Opel for dead, so be it. According to this executive,  GM feels it wasn't told the whole story before it dumped  $423 million into PSA to buy 7 percent of the moribund company, and that PSA did not disclose the full extent of the troubles the French were in. Also according to the executive, Steve Girsky recommends to call the PSA deal off, on grounds that PSA did not open the kimono wide enough. As a matter of fact, says the executive and orders another one of what the Chinese in Chengdu may be drinking, Steve is pretty tired of the Opel and Europe mess. If calling off the PSA deal pulls the last hose out of the German Opel patient, so be it. The line that Buick & China were against the platform sharing is a semi-truth, says the now very relaxed exec. Of course they were not happy. But their opposition was a convenient reason to call-off the platform sharing, which would kill the whole deal elegantly and without anyone having to raise a big stink. Early August, it was reported that GM may have to write down the PSA investment if it won't turn for the better.  On Monday, German media revealed that a deal between Opel and PSA that called for sharing of the Insignia platform was called off. Possibly, TTAC has become a target of the dreaded leaks. Who knows. I went to my hotel room to get some Chinese cash. Gotta go back to the bar. from The Truth About Cars http://www.thetruthaboutcars.com

Put the internet to work for you. via Personal Recipe 680102