Peugeot Walks Away from Opel Merger

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By Trey Thoelcke Published
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Peugeot, though in desperate need for a cash infusion, will not try to bolster its fortunes through a merger with General Motors Co.’s (NYSE: GM) Opel division, according to Autogazette.

Its ability to hold out may only last so long. Car sales in Europe have plunged due to the deep recession in the area. Most manufacturers are left with too many workers and too many factories. Unions and local government muscle make broad layoffs difficult.

Opel has lost money every year for more than a decade. Investors view it as GM’s Achilles Heel. The number one U.S. car company might believe that a tie-up with Peugeot would create economies of scale in management, product development and manufacturing. However, unions and governments that want to force private companies to help their economies by eliminating layoffs would pressure a joint venture as much as either company individually.

Consolidation makes sense on paper, but not in the real world of Europe.

Douglas A. McIntyre

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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