>> General Motors sealing its exit from Europe. The American car giant declaring it struck a 2.2 billion Euro deal with PSA Group for its European operations. The French company, that makes Peugeot and Citroen cars, vowing to return Opel and its British Vauxhall brand to profit. Leaving employees questioning what's next.
Reuters correspondent Edward Taylor says Peugeot has agreed to adhere to all the job guarantees given to Opel and Vauxhall workers, so far.>> But these are basically only three year guarantee deals. And who knows what the market will look like beyond that. Labor unions this morning are demanding that the management of Peugeot engage in a more intense dialog to see whether or not job losses are on the horizon.
I think even Peugeot doesn't really know the answer to that.>> For General Motors, it means a departure from the volume game surrendering 1 million sales in Europe. With Opel in its arsenal, PSA group becomes the region's second ranked car maker by sales. Leap frogging rival Renault and holding a 16% market share to leader Volkswagen's 24%.
A potential hard Brexit making factories in Great Britain a potential asset.>> If tariffs for importing and exporting cars between Great Britain and the European Union are imposed, then one way to circumvent these tariffs is to manufacture the cars in their respective local markets. And Peugeot did not have factories in the UK until it bought Opel.
Opel has two, it has a big factory in Ellesmere Port and one in Luton.>> Questions remain with the Opel's UK factories continue to be the main exporting hub into the EU once PSA is behind the wheel. The deal is expected to close late this year.