PSA-GM: The final solution?

It is quite clear that executives of General Motors Europe and PSA Group have been working behind the scenes for quite some time in secret to cobble together a deal to off-load General Motors’ Europe (GME) vehicle-making operations.

GM to build Mokka in Zaragoza

General Motors’ plant in Zaragoza (Spain) will start producing Mokka, a small sports utility vehicle (SUV) in the second half of 2014.

The combined GM and Opel/Vauxhall leadership made the joint decision because of the high demand for the vehicle in Europe. Also, additional capacity for small SUVs will be created at the plant in Bupyeong (Korea) that has been the sole source of production so far.

Opel chief executive officer Dr. Karl-Thomas Neumann said: “The decision for Zaragoza follows our company's strategy of building vehicles where we sell them. The enormous demand for the Mokka underlines the attractiveness of our vehicles, adds momentum to our product offensive and secures jobs in Europe. The decision will help address the under-utilisation of available production capacity in Europe and therefore is good news for the entire organisation.”

GM to invest €240 million in testing

Proof that the Millbrook’s Proving Ground’s days are drawing to a close as a permanent General Motors (GM) test facility come with the news that GM will invest €230 million for new testing facilities at its European Product Development Centre at the Opel headquarters in Rüsselsheim and at the proving ground in Dudenhofen.

Rumours have persisted for some time that the famous Millbrook facility in Bedfordshire, UK is to change hands; indeed, it is understood that an announcement only awaits the completion of the lengthy process if due diligence. JaguarLandRover is among companies whose names have been mentioned in connection with this acquisition.

As GM’s investment will be executed in the next three to four years it is to be assumed that GM will continue to hire some of Millbrook’s facilities, including possibly the important test tracks and engineering resources.