PSA Vows To Keep Jobs, Brands Ahead Of Sale Of GM's Opel

DETROIT (WWJ/AP) - Executives are working hard to calm nerves in Europe about the possible sale of General Motor's Opel brand.

Chancellor Angela Merkel has called the chief executive of PSA Group, the maker of Peugeot and Citroen cars, to discuss its potential takeover of GM's German subsidiary.

Merkel's spokesman said PSA boss Carlos Tavares told her Tuesday that the Opel unit would remain independent within the group.

The spokesman, Steffen Seibert, said Tavares also assured Merkel that PSA would safeguard Opel's sites and planned investments and "honor job guarantees."

WWJ AutoBeat Reporter Jeff Gilbert reports Tavares said it's his goal to protect and to grow the Opel brand, which is headquartered in Germany, and that creating the conditions for a rebound of Open is a "common goal."

The joint statement out Tuesday did not elaborate further or divulge what Merkel told Tavares.

Germany's economy minister, Brigitte Zypries, is to travel to Paris on Thursday to discuss the takeover with her French counterpart.

Opel employs 19,000 people in Germany out of a total workforce of 38,000. And it's an election year in Germany, so politicians are particularly sensitive to possible job losses.

Gilbert said there are reports that a deal to sell GM's European brands could be reached by the end of the week.

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