OPEL ACQUISITION

PSA Chief Gives His Word on Jobs

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Labor and government representatives are trusting that Carlos Tavares is a man of his word. Picture source: Reuters.

For now, labor representatives at Opel will have to take Carlos Tavares’ word for it.

During a meeting in the German economics ministry on Wednesday, the chief of French carmaker PSA promised to uphold all labor and investment agreements, which run through 2018 and 2020 respectively, after the company completes its acquisition of Opel.

Labor representatives, however, are looking for more than just promises from Mr. Tavares. They want a signed, legally binding agreement, something the PSA Group says it cannot deliver quite yet.

Citing anti-trust laws, the PSA Group says it cannot sign anything until the acquisition is complete. The automakers are technically rivals until the deal is done, so they cannot dive into negotiations about the future just yet, according PSA’s reading of the legal situation.

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