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>> Bosses from General Motors and Peugeot parent, PSA, meeting Wednesday in Germany. They're pressing ahead with plans for the French firm to acquire GM's Opel and Vauxhall brands. But auto industry watchers say the planned deal is beset with problems, not least the politics of any job cuts. Reuters' senior correspondent, Ed Taylor, is at GM's European headquarters in Ruesselsheim.
>> In any deal that involves cost cutting in the auto industry, jobs are at stake, and as we know, France and Germany are both facing election years, and entire factories may have to be closed. Who and where the jobs will be cut is the decisive factor which could determine the outcome of this deal.
>> The German government is angry that the deal is being discussed without consulting Opel Works' councils, or the local government. Labor unions at the firm say the talks could breach their legal right to a say in big decisions. But in this European deal, it could be Paris that has the upper hand.
>> The French government has never been shy to intervene to protect factories and jobs at home. This is a key challenge for Angela Merkel, who may end up being the junior partner in a deal in terms of the countries involved. Peugeot is the acquiring party. Opel has a challenge.
It needs to preserve jobs at home and be profitable.>> Other obstacles loom, among them agreeing on a price for loss-making Opel. But analysts say there is reason in the deal. GM wants to focus on profitably, not volume. Peugeot wants to bulk up to take on European leader Volkswagen.
The question is whether political imperatives will trump business logic.