The Opel brand might come with a $2 billion price tag.
General Motors and PSA Group have valued GM's Opel car unit at about $2 billion, a new report finds. GM announced last week that it was holding talks with PSA to sell off its Opel division.
Although a $2 billion valuation is being thrown around, that figure could change before an agreement is reached. Both sides are still weighing the value of brand rights, net savings and pension liabilities.
A solid figure could be reached quickly, however, as The Detroit News reports that PSA is eager to get a deal done by next Thursday. That's when the French automaker is set to announce full-year earnings.
The PSA-Opel deal seems to have momentum on its side, but there are still some hurdles to clear. For example, there are real concerns about PSA's ability to maintain production in the UK. Labor representatives are also working behind the scenes to ensure Opel production stays in Germany.
But after losing $9 billion in the European market since 2009, GM appears ready to deal Opel.
"What is pretty clear is that the negotiations with Peugeot are advanced and more concrete proposals are imminent," Len McCluskey, general secretary of Unite union that represents Vauxhall workers, told reporters. "We're not talking about months."